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hello and welcome to the session this is professor forehead in this session we would look at the primary concern in the audit of owners equity transaction and specifically we can look at the internal control of owners equity transaction this is part of the audit of a cap with liquid capital acquisition and the repayment cycle we already have four recordings three of which deals with debt debt as a source of capital acquisition that acquisition now were going to start the deal with equity were gonna start the deal with stocks when we issue stocks to raise money what type of internal control we should have the first thing we want to differentiate is the difference theres an important difference in the audit of owners equity between publicly held companies and closely held or private companies okay what is the difference most private companies or small companies they have few shareholders so they have less shareholders and only occasional stockholders equity transaction so theres
