Which of the following would the auditor use to determine the existence of investments?
A) Footing the schedule of recorded investments.
B) Confirming or examining recorded investments.
C) A schedule of investments sold during the year.
D) Recomputing interest and/or gains and losses.

Question

Quizplus · Accepted Answer

The auditor would confirm or examine recorded investments to determine their existence. This may involve getting confirmation of the investment from the financial institution or custodian holding the investment, or physically inspecting the investment if it's a tangible asset such as real estate. The other choices are not directly related to determining the existence of investments.

Which of the Following Would the Auditor Use to Determine