Question

A transfer agent and a registrar are most likely to provide the auditor with evidence on which aspect?

Option 1: Verification of asset valuations
Option 2: Transactions with related parties
Option 3: Proper registration of stock ownership
Option 4: Corporate tax reporting

Answer 1

A transfer agent and a registrar would provide an auditor with evidence on the proper registration of stock ownership, which confirms accurate records of company stockholders.

Step-by-step explanation:

The transfer agent and the registrar are involved in maintaining records of investors and managing transactions related to securities ownership. When an auditor seeks evidence regarding certain aspects of a company's records, these two entities can provide valuable information. Among the given options, a transfer agent and a registrar are most likely to provide the auditor with evidence on proper registration of stock ownership. This involves ensuring that the records accurately reflect the current ownership of the company's stocks, which is crucial for the integrity of the capital markets.