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Question - As part of your preliminary review you have discovered the following information: You are the audit senior at Chan & Associates and have been assigned to the audit of shareholders' equity of Galaxy Ltd (Galaxy), a large publicly listed company. Galaxy uses the services of an independent share registry office to maintain detailed records of their shareholders.
One month before year end, Galaxy made a large share issue, which was 80 % subscribed
Prior to the new share issue, Galaxy declared a dividend to its existing shareholders. This dividend remains unpaid at year end.
REQUIRED - Identify the key assertions and explain the audit procedures that you would undertake in order to obtain sufficient appropriate audit evidence in respect of the share issue and dividend.
Financial Statement Analysis and Preparation
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