Substantive tests must be designed to tests specific audit objectives.
REQUIRED: For the following specific audit procedures, indicate the assertion that is being tested. Use the following letters, placing your response in the space provideD.
-Examine consignment agreements.
A)Existence or occurrence
B)Completeness
C)Valuation or allocation
D)Rights and obligations
E)Presentation and disclosure

Question

Quizplus · Accepted Answer

Examining consignment agreements tests the Rights and Obligations assertion, as it verifies whether the entity has the rights to the consigned goods and the obligations associated with these goods.

Substantive Tests Must Be Designed to Tests Specific Audit Objectives