Which of the following is true regarding the financial statement assertions?
A)All assertions can be proved using only substantive procedures,but it would be too costly.
B)Some assertions are virtually impossible to prove without some evaluation of control effectiveness.
C)Some assertions can be proved using only an evaluation of control effectiveness.
D)The evaluation of control effectiveness is only used because it is more efficient than using only substantive procedures.

Question

Quizplus · Accepted Answer

Some assertions, such as completeness and existence, are difficult to prove without assessing the effectiveness of controls. While substantive procedures can be used for all assertions, it may be too costly to rely solely on them. Additionally, evaluating the effectiveness of controls can provide evidence for certain assertions and may be a more efficient way to gather evidence.

Which of the Following Is True Regarding the Financial Statement