The auditor performs substantive procedures related to property,plant,and equipment to determine if the assets have been pledged as collateral or title has transferred.What is the primary assertion the auditor is testing?
A)Valuation.
B)Rights.
C)Completeness.
D)Existence.

Question

Quizplus · Accepted Answer

The primary assertion being tested in this scenario is Rights which ensures that the entity has the legal rights and title to the property, plant, and equipment that they claim to own. This assertion also includes whether the assets have been pledged as collateral or not. Valuation relates to the correctness of the carrying amount of the asset, completeness relates to whether all recorded assets have been included in the financial statements and existence refers to the physical existence of the asset.

The Auditor Performs Substantive Procedures Related to Property,plant,and Equipment to Determine