The process of working from financial statement figures back to detailed documents most directly addresses the financial statement assertion of
A)Completeness.
B)Existence.
C)Disclosure.
D)Correctness.

Question

Quizplus · Accepted Answer

When working back from financial statement figures to detailed documents, auditors are focusing on the existence assertion, which confirms that the assets, liabilities, and equity interests exist and are legally valid. This process involves verifying that the transactions supporting the financial statement figures actually occurred and providing sufficient audit evidence to support the amounts reported. Therefore, choice B is the correct answer. Completeness assertion would involve working forward from detailed documents to financial statements to ensure that all transactions have been included, while disclosure assertion would focus on ensuring that all necessary information is presented in the financial statements. Correctness assertion would involve ensuring that financial statement figures are accurate and recorded in accordance with GAAP.

The Process of Working from Financial Statement Figures Back to Detailed