Which assertions may be tested for the "account balances" category of management assertions?
A)Existence, cutoff, rights and obligations, completeness.
B)Existence, rights and obligations, completeness, accuracy, valuation, allocation, and presentation.
C)Occurrence, rights and obligations, completeness, valuation and allocation.
D)Occurrence, accuracy, rights and obligations, completeness.

Question

Quizplus · Accepted Answer

The management assertions that may be tested for the "account balances" category are existence (whether the account balance actually exists), rights and obligations (whether the company has the legal right and obligation to the account balance), completeness (whether all account balances are recorded), accuracy (whether the account balance is accurate), valuation and allocation (whether the account balance is properly valued and allocated), and presentation (whether the account balance is presented accurately). Option B covers all these assertions. Therefore, B is the best answer.

Which Assertions May Be Tested for the "Account Balances" Category