If the auditor is testing whether long-lived assets exist at the balance sheet date,which assertion is being tested?
A)Completeness.
B)Rights and Obligations.
C)Existence.
D)Valuation

Question

Quizplus · Accepted Answer

When the auditor is testing whether long-lived assets exist at the balance sheet date, they are checking for the existence assertion. This assertion ensures that the assets reported in the financial statements actually exist and are owned by the company. Completeness would relate to ensuring that all long-lived assets have been included in the financial statements, whereas rights and obligations would relate to ensuring that the company has legal ownership of the assets. Valuation relates to the accuracy of the values assigned to the assets, rather than their existence.

If the Auditor Is Testing Whether Long-Lived Assets Exist at the Balance