Assume the auditor determines that verifying marketable securities is a major and material item to the financial statements of an audit client. The auditor must therefore obtain a sufficient amount of relevant and reliable evidence about marketable securities for this audit client. The audit must also result in gathering sufficiently persuasive evidence satisfying the auditor that marketable securities are materially correct.

Question

Quizplus · Accepted Answer

This statement is true. When an auditor determines that verifying marketable securities is a major and material item, they must gather enough relevant and reliable evidence to satisfy themselves that the balance is materially correct. This ensures the accuracy and completeness of the financial statements.

Assume the Auditor Determines That Verifying Marketable Securities Is a Major