 correctly posted in the accounting records. So we want to make sure that they're correctly posted in an accurate format. And then the assertion of authorization, we want to verify that stock dividend transactions were correctly approved. Did we go through the approval process and notice the stock dividend transactions is going to be something that could be a large major type of transaction. So there should be a formal, basically approval process. And then we have the valuation assertion, verify that stock and dividend transactions were correctly valued segregation of duties. So segregation of duties are major internal control with relation with this relation to stockholders equities, those responsible for issuing, transferring and canceling stock certificates will not have an accounting responsibility. Now, this is ideal. We're hoping that we're able to do this or that those responsible for maintaining the detailed stockholders records should be independent from the maintenance of the general control accounts. Then we have those responsible for maintaining the detailed stockholders records should not process cash receipts or disbursements and segregation of duties should be set among the preparation, recording, signing and mailing of the dividend checks. Note that these are pretty heavy segregation of duties, especially this first one here, those are responsible for issuing, transferring and canceling stock certificates will not have any accounting responsibility. That's a pretty heavy kind of internal control in that you would think that someone that's involved with some type of accounting process might be the individual that would be involved with that process if there weren't some internal control in place. So if these segregation duties are not doable, because of personal of personnel shortages, in other words, if we don't have the personnel to be able to do these separations of duties, management review controls should be in place, we should have then management review controls in place as a type of control setup. If these types of segregation of duties are too heavy too many segregations for that particular organization to handle. Now we're going to consider the auditing of capital stock and take a look at the assertion of occurrence and completeness. If outside agents are used auditor confirms information relevant to the year and amounts with them. So if we have an outside agent, then the auditor can go to the outside agent and confirm information relevant to the year and the amounts when outside agents are not used, then the auditor has to do something else. What's the order going to do trace the transaction of shares between the stockholders to the stock register and or stock certificate book foot the shares outstanding in the stock register and or stock certificate book match them to total shares outstanding in the general ledger examine any canceled checked certificates and inspect any unissued stock certificates in the stock certificate book. So once again, we have the capital stock auditing occurrence, if outside agents are used, if we have the outside agents, the auditor can confirm the information relevant to the year with them. When the outside agents are not used, the auditor will have to go through some more procedural steps, those steps being once again, trace the transaction of shares between the stockholders to the stock register and or stock certificate book foot the shares outstanding in the stock register and or stock certificate book. So I mean, add them up, of course, match them to the total shares outstanding in the general ledger examine any canceled stock certificates and inspect any unissued stock certificates in the stock certificate book. Now we're going to consider the assertion of valuation stock issued for cash is fairly simple transaction. So when we consider the valuation of stock that's issued for cash, because it's typically considered a market exchange, if it's going to be a publicly traded company on a market exchange, fairly straight forward type of transaction, the valuation would be you would think the market exchange and the market exchange not too difficult to know considering cash was paid for it. And so proceeds from the sale are traced to the cash receipts records for valuation valuation is more complex when stock is issued for property goods or services. Obviously, when we have property goods or services, we are issuing stock, which we may not exactly know the value for, although if other stock is being traded on the stock exchange that might help us with that type of transaction, but it's more complex than if we just got cash in a market transaction. And then of course, the property goods and services that we're receiving, it's hard to determine exactly what the market rate is for those property goods and services. So that's a bit more complex of a valuation stock dividends can also be more complex auditing issue. So when we have stock dividends, so in essence, when we're giving back value to the shareholders, but instead of the giving back in essence, the retained earnings, the earnings of the company in the form of cash, given it in the form of dividends, that can be a bit more complex to value as well. Auditor needs to recompute the stock dividend and trace the entries to the general ledger related to valuation. Now we're going to consider completeness disclosure items include so the disclosure items we need to include include number of shares authorized issued and outstanding. So the number of shares authorized issued and outstanding call privileges prices and dates of preferred stock preferred stock sinking fund. And of course, these would only be applicable if we had preferred stock stock options or purchase plans. So if there's already any stock options or purchase plans want to disclose those items restrictions on retained earnings and dividends. So if there's any kind of restrictions on the retained earnings and dividends, those need to be disclosed all completed or pending transactions that may affect stockholders equity. So any other types of transaction that may have a direct effect on the stockholders equity should be disclosed.