When testing for the ________ assertion, auditors search for evidence that assets, liabilities and equity items have been recorded at appropriate amounts and allocated to the correct general ledger accounts.
A)presentation and disclosure
B)valuation and allocation
C)existence
D)occurrence

Question

Quizplus · Accepted Answer

The description provided matches the valuation and allocation assertion, which is concerned with verifying the accuracy of financial statement amounts attributed to transactions, events or activities. It ensures that assets, liabilities, equity and their subsequent transactions have been recorded at their appropriate values and in the right accounts. The other assertions listed (presentation and disclosure, existence, and occurrence) focus on different aspects of financial reporting.

When Testing for the ________ Assertion, Auditors Search for Evidence