Substantive tests must be designed to tests specific audit objectives.
REQUIRED: For the following specific audit procedures, indicate the assertion that is being tested. Use the following letters, placing your response in the space provideD.
-Inspect major new additions to plant assets during the current period.
A)Existence or occurrence
B)Completeness
C)Valuation or allocation
D)Rights and obligations
E)Presentation and disclosure

Question

Quizplus · Accepted Answer

Inspecting major new additions to plant assets during the current period directly tests the existence or occurrence assertion, ensuring that the assets recorded in the financial statements actually exist and have occurred within the given period.

Substantive Tests Must Be Designed to Tests Specific Audit Objectives