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)Presentation and disclosure.
D)Existence.

Question

Quizplus · Accepted Answer

The auditor is primarily testing the assertion of rights, to ensure that the entity has lawful ownership and rights to use the property, plant, and equipment being reported on the financial statements. The other assertions may also be relevant to the audit of property, plant, and equipment, but the primary focus is on rights.

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