In auditing investments, auditors may compare current-year and prior-year balances or compare actual results for the amount of investments and investment income with budgets or the documentation of management's plans. Unexpected differences would would be least likely to pertain to assertions about:
A) existence of occurrence.
B) completeness.
C) rights and obligations.
D) valuation or allocation.
E) presentation and disclosure.

Question

Quizplus · Accepted Answer

Unexpected differences in investments are least likely to pertain to the rights and obligations assertion, as this assertion is more concerned with whether the entity holds or controls the rights to the investments, rather than the amounts or changes in balances.

In Auditing Investments, Auditors May Compare Current-Year and Prior-Year Balances