Which of the following procedures is a substantive procedure that relates to the rights and obligations assertion?
A) Assess management's impairment estimates.
B) Examine documents of title.
C) Recalculate amortization expense.
D) Inquire management about assets that are idle.

Question

Quizplus · Accepted Answer

Examining documents of title is a substantive procedure that relates to the rights and obligations assertion as it confirms the client's legal ownership and rights to use assets as reflected in the financial statements. The other choices are also substantive procedures but relate to other assertions. Assessing management's impairment estimates relates to the valuation assertion, recalculating amortization expense relates to the completeness and accuracy assertion, and inquiring management about assets that are idle relates to the existence and occurrence assertion.

Which of the Following Procedures Is a Substantive Procedure That