 In this presentation, we will take a look at the audit process related to stockholders' equity. So we're in the equity section now, stockholders' equity. Types of important transactions related to stockholders' equity will include the issuance of stock, sale of stock either for cash or the exchange of stock for assets, services, convertible debt, issuance of stock in a stock split. So obviously, when we're talking about the stockholders' equity section, one of the key components would be if there's issuance of new stock. Now, if we're talking about a publicly traded company, it may be the case that new stock will be issued, but it's probably not a lot of transactions as compared to other types of areas within the financial statements. So we would expect the issuance of stock to not have a whole lot of transactions. If we're talking about smaller companies, then it's quite likely possibly that there's no stock issuance taking place. If there's a stock issuance for cash, fairly straightforward, it gets a little bit more complex if stock was issued for something other than cash, which can be the case. It can be the case that stock is issued in exchange for something or the relief of debt in some format. And of course, we have the component of stock splits, which can be a little bit more complex than a straight transaction for cash as well. The repurchase of stocks, both the reacquisition of stock and retirement of stock, is another type of transaction we want to look into. Of course, if the stock is going to be repurchased off the market, if we're talking about a publicly traded company, for example, and they repurchase their own stock, either to hold on to it, to acquire it as treasury stock, or if they're going to basically retire the stock, those are transactions we want to keep aware of or be aware of within the audit process and the payment of dividends, both cash and stock dividends. So the dividend payments, something that we want to consider with relation to stockholders equity. Of course, the dividends payment being the payment back, kind of similar to a draw for a sole proprietor of the earnings. So the dividends can be in the form of cash, probably a more straightforward thing to audit or will be pretty much a more straightforward thing to audit. Stock dividends going to be a little bit more complex to audit. Control risk assessment. So now we're going to consider the control risk with relation to stockholders equity. A substantive strategy is generally used to audit stockholders equity because the number of transactions is usually small and the value is often large. So in other words, once again, we typically will be using a substantive strategy. Why? Because just like it's kind of like with the fixed asset type of account, if we buy things like property, plants and equipment, there's not a whole lot of transactions that are happening. And therefore we probably can audit more of those transactions with a straight substantive procedural tests. The same thing can be do true with the stockholders equity. In other words, we have small transactions number wise, not a whole lot of transactions. So we can audit pretty much all the transactions and the transactions that are involved are typically all large dollar amount transactions. So all the transactions that are there are things that we typically are going to want to audit want to do substantive procedural testing for. And therefore, although we will get an idea of the internal controls and the inherent risk, we're probably going to be doing a lot of substantive testing no matter what our determination is about the controls and the inherent risk. Auditor still needs to understand the controls that are in place to prevent the misstatement of equity transactions. So in other words, when we say that this is going to be a substantive type of procedural approach, we're going to take a substantive approach to substantive testing. You might think, well, great, I don't have to think about the controls or testing the controls or thinking about the internal controls or the inherent risk because I'm going to just going to do all the substantive testing anyways. Well, that's not necessary. That's not really the case. We still have to know the controls because that's part of the process that's going to fill our bucket that we need of audit evidence in order to issue our opinion. Publicly traded companies will use an independent register registrar, a transfer agent and dividend disbursement agent to process and record equity transactions. So in that case, if we're talking about a publicly traded company, these individuals will be involved as we go through that formal process within a publicly traded company. So relevant information about equity transactions may be confirmed with them. That's great for us and part of the process, part of the reason that is there is the type of internal control, a type of regulation for publicly traded companies within the audit process. It of course gives us these individuals, these kind of bureaucratic type of institutional individuals outside of the organization that we can then help get an understanding of these transactions with. Now we'll consider assertions and the control activities related to those assertions in regards to stockholders equity, the first one being occurrence, the assertion of occurrence, verify that stock and dividend transactions are valid and that they comply with the corporate charter. The next assertion is accuracy with relation to accuracy, verify that stock and dividend transactions have been