stockholders equity

Question 1

existence

Answer 1

if there is an external registrar confirm the o/s shares

verify that the issuance were consistent with the articles of incorporation and approved in the minutes

Question 2

completeness

Answer 2

read minutes for authorization of issuance

account for the numerical sequence of stock certificates

Question 3

rights and obligations

Answer 3

verify par or stated value - either by inspecting certificates or minutes

review contracts with employee stock option plans for compliance with those aggreements

inquire about restrictions related to dividends

Question 4

valuaiton

Answer 4

trace cash receipts and disbursements to accounting records and to bank statement: read minutes for authorization of transactions

verify par or stated value