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primary owners.
65. All of the following represent equity issuance requiring prominent
accounting, presentation and disclosure treatment, except (Points: 4)
stock with beneficial conversion features.
Warrants issued to a consultant for services performed.
Preferred stock that is cumulative and par value is $0.50 per
share.
Dividends have not been paid on common stock since inception.

66. The auditor will examine proceeds and trace them to recorded
amounts of the par value of common stock to determine that (Points:
4)
shares exist and have valid stock certificates.
proceeds have been properly distributed between common stock
and additional paid-in capital.
dividends have been issued in accordance with the stock indenture
agreement as approved by the board.
shareholders actually have the rights to shares issued by the
company in exchange for subscribed funds.
67. Which of the following is a tool that is best used by the audit team
to determine if the client has included all disclosures? (Points: 4)
Management representation letter.
GAAS.