Which of the following would the auditor use to determine the existence of investments?

Question

Quizplus · Accepted Answer

Confirming or examining recorded investments would be the most appropriate way for an auditor to determine the existence of investments. This would involve verifying that the amounts recorded in the accounting records match with the actual investments held by the company, and confirming that the investments are owned by the company and are correctly valued. The other choices, such as footings or recomputing interest and gains and losses, may be useful in verifying the accuracy of the investment records, but would not provide direct evidence of the existence of the investments themselves.

Which of the Following Would the Auditor Use to Determine