[Solved] A company auditor should see that the dividend should be paid

A company auditor should see that the dividend should be paid

a) After charging depreciation

b) Without charging depreciation

c) Out of capital

d) None of the above

Answer: (a) A company auditor should see that the dividend should be paid after charging depreciation. The auditor should examine the Minutes of the General Meeting and the Board of directors to confirm the amount of dividend recommended by the directors and declared in the general meeting. He should verify the dividend payments with the bank passbook.

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