The specific financing cycle audit objective, stockholders' equity balances include the effects of all transactions pertaining to paid-in capital and retained earnings through the balance sheet date, relates to the: A) rights and obligations assertion. B) completeness assertion. C) existence or occurrence assertion. D) valuation or allocation assertion. E) presentation or disclosure assertion.

Question

Quizplus · Accepted Answer

The objective relates to the completeness assertion because it ensures that all transactions affecting stockholders' equity, including paid-in capital and retained earnings up to the balance sheet date, are recorded. This assertion is concerned with whether all transactions that should have been recorded have indeed been included in the financial statements.

The Specific Financing Cycle Audit Objective, stockholders' Equity Balances Include