All of the following can assist the auditor in testing the existence assertion for investment securities except:
A)physical examination.
B)comparing fair value to cost.
C)confirmation with the issuer of the securities.
D)confirmation with the custodian.

Question

Quizplus · Accepted Answer

Comparing fair value to cost may help the auditor test the valuation assertion but does not directly assist with testing the existence assertion, which focuses on whether the investment securities actually exist and are owned by the entity. Physical examination, confirmation with the issuer and custodian can provide evidence of the existence of the investment securities.

All of the Following Can Assist the Auditor in Testing