An auditor determines that there is an inherent risk that all stock repurchased is not recorded as treasury stock.This determination is most likely tied to which of the following management assertions?
A)Completeness.
B)Presentation and disclosure.
C)Valuation.
D)Existence.

Question

Quizplus · Accepted Answer

The auditor's concern that not all repurchased stock is recorded as treasury stock directly relates to the completeness assertion. This assertion involves ensuring that all transactions and events that should have been recorded have indeed been recorded. In this case, the auditor is worried that the company's financial records may not fully capture all stock repurchases, potentially leading to incomplete financial reporting.

An Auditor Determines That There Is an Inherent Risk That