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

Question

Quizplus · Accepted Answer

Comparing fair value to the original cost would not necessarily assist the auditor in testing the existence assertion for investment securities. This procedure would only be relevant in testing the valuation assertion. Physical examination, confirmation with the issuer of the securities, and confirmation with the custodian are all relevant procedures for testing the existence assertion.

All of the Following Evidence-Gathering Procedures Can Assist the Auditor