The auditor performs tests on property,plant and equipment to determine if assets have been pledged as collateral or title has transferred primarily to assess which assertions?
A)Valuation and completeness.
B)Rights and disclosure.
C)Obligations and legality.
D)Cutoff and accuracy.

Question

Quizplus · Accepted Answer

The auditor is primarily testing whether there are any undisclosed liens or encumbrances on the assets (rights assertion) as well as whether any transfers of title have been properly disclosed (disclosure assertion). Valuation and completeness assertions are not the focus of this particular test, and obligations and legality and cutoff and accuracy are not directly relevant to property, plant, and equipment.

The Auditor Performs Tests on Property,plant and Equipment to Determine