When testing for the ________ assertion, auditors search for evidence to verify that asset, liability and equity items on the balance sheet actually exist.
A)presentation and disclosure
B)existence
C)occurrence
D)valuation and accuracy

Question

Quizplus · Accepted Answer

When testing for the existence assertion, auditors are looking for evidence to verify that the asset, liability, and equity items that are reported on the balance sheet actually exist as of the reporting date. This involves physically inspecting assets, confirming account balances with third-party sources, and performing other tests to ensure that the financial statement balances are accurate.

When Testing for the ________ Assertion, Auditors Search for Evidence