A is corrent because a client’s internal control will not relate directly to shareholder meetings. CPAs will often attend the shareholder meetings and be aware of what has transpired, but important matters at such meetings are generally publicly available.
B is incorrect because the auditor would be concerned with the internal control of land and buildings which may involve a substantial portion of the client’s assets.
C is incorrect because the auditor would be concerned with the internal control related to common stock which may involve a substantial portion of the client’s equity.
D is incorrect because the minutes of the minutes of the board of directors must be received by the auditor in complete form so that the auditor may be aware of matters of significance.
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