When an auditor recomputes the unexpired portion of prepaid insurance, they are satisfying which audit objective?
A)Completeness
B)Existence
C)Accuracy and detail tie-in
D)Rights

Question

Quizplus · Accepted Answer

Recomputing the unexpired portion of prepaid insurance is related to the accuracy and detail tie-in audit objective, as it ensures that the amounts recorded in the financial statements are accurate and supported by appropriate documentation. This procedure compares the amount of prepaid insurance expenses at a point in time to the amounts recorded in the accounting records, verifying their accuracy.

When an Auditor Recomputes the Unexpired Portion of Prepaid Insurance