Which are the two audit assertions considered most important to the auditor concluding there are no material misstatements in trade receivables at year-end?
A)Occurrence and rights and obligations
B)Valuation and allocation,and rights and obligations
C)Existence and occurrence
D)Existence and valuation and allocation

Question

Quizplus · Accepted Answer

The two audit assertions considered most important to the auditor concluding there are no material misstatements in trade receivables at year-end are existence and valuation and allocation. Existence assertion addresses whether the recorded trade receivables actually exist as of the year-end, while valuation and allocation assertion addresses whether the trade receivables are properly valued and allocated to the correct accounting periods. The other choices (A and C) only address one of these two key assertions, while B includes allocation, which is relevant but not as critical as valuation when assessing the materiality of trade receivables.

Which Are the Two Audit Assertions Considered Most Important to the Auditor