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) Valuation and allocation, and rights and obligations
B) Existence and occurrence
C) Occurrence and rights and obligations
D) Existence and valuation and allocation

Question

Quizplus · Accepted Answer

The two audit assertions that are 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 ensures that the accounts receivable exist and are owned by the company, whereas valuation and allocation assertion ensures that accounts receivable are recorded at their correct value. Therefore, option D is the best choice.

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