The specific audit objective for the audit of investments, recorded investment asset and equity balances represent investments that exist at the balance sheet date, relates to the: A) existence or occurrence assertion. B) completeness assertion. C) rights and obligations assertion. D) valuation or allocation assertion. E) presentation or disclosure assertion.

Question

Quizplus · Accepted Answer

The specific audit objective mentioned relates to the existence or occurrence assertion because it focuses on ensuring that the recorded investment assets and equity balances actually exist at the balance sheet date. This assertion is concerned with verifying that assets, liabilities, and equity interests are real and present at a given time.

The Specific Audit Objective for the Audit of Investments, recorded