The specific audit objective, the entity has legal title to all cash balances shown at the balance sheet date, is derived from 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 that the entity has legal title to all cash balances shown at the balance sheet date is derived from the rights and obligations assertion. This assertion concerns whether the entity actually has the rights to the assets listed on its balance sheet, in this case, the cash balances.

The Specific Audit Objective, the Entity Has Legal Title to All