Which of these procedures do auditors usually perform as a test of details of transactions to verify all management assertions relating to investments?

Question

Quizplus · Accepted Answer

Auditors usually perform vouching of purchases and sales of investments to brokers' advices as a test of details of transactions, which helps in verifying the existence, completeness, accuracy, and valuation assertions. Additionally, the auditors may also inspect the minutes of directors meetings to obtain information about any significant events or transactions related to investments. Hence, Option D, both b and c, is the correct answer. Choice A, tracing purchases of investments to brokers' advices, is not as effective as vouching as it only confirms the occurrence of the transaction and not its completeness or accuracy.

Which of These Procedures Do Auditors Usually Perform as a Test