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

Question

Quizplus · Accepted Answer

The management assertions that can be tested for account balances include existence (whether the balances actually exist), rights and obligations (whether the organization has the legal right to its assets and obligations), completeness (whether all balances have been recorded), and valuation and allocation (whether balances are recorded at the correct amounts and properly allocated). The option B covers all these assertions.

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