Priscille White was performing the review of cash transactions at Banker's Trust. Which three assertions are the most important when ensuring that there are no material misstatements
For cash at Banker's Trust?
A) existence, completeness, valuation and allocation
B) existence, valuation and allocation, rights and obligations
C) existence, completeness, classification
D) none of the above

Question

Quizplus · Accepted Answer

When reviewing the cash transactions at Banker's Trust, the most important assertions are existence (to ensure the cash actually exists), completeness (to ensure all cash transactions have been recorded), and classification (to ensure cash transactions have been classified correctly in the financial statements). Valuation and allocation and rights and obligations are important for other types of assets, but not as critical for cash.

Priscille White Was Performing the Review of Cash Transactions at Banker's