The auditor's transaction- related audit objective for acquisitions, to determine that 'recorded acquisitions are for goods and services received', relates to:
A) completeness.
B) authorisation.
C) accuracy.
D) existence.

Question

Quizplus · Accepted Answer

The transaction-related audit objective for acquisitions, 'recorded acquisitions are for goods and services received', relates to the existence objective. This objective ensures that the transactions recorded in the financial statements actually occurred and the assets and liabilities exist at the balance sheet date. This objective focuses on verifying that the acquisitions recorded actually took place, and the goods and services received exist. The other responses (completeness, authorisation, and accuracy) do not directly relate to this objective.

The Auditor's Transaction- Related Audit Objective for Acquisitions, to Determine