In the audit of cash and accounts receivable,the main emphasis should be on which assertion?
A)completeness
B)existence
C)rights and obligations
D)presentation and disclosure

Question

Quizplus · Accepted Answer

The main emphasis in the audit of cash and accounts receivable should be on existence assertion. This means verifying whether the recorded amounts actually exist and are owned by the entity at the audit date. It is important to ensure that there are no fictitious receivables, unrecorded cash, or unearned revenue. The auditor should also check the accuracy of the valuation and cutoff of cash and receivables. The completeness, rights and obligations, and presentation and disclosure assertions are also important but secondary considerations.

In the Audit of Cash and Accounts Receivable,the Main Emphasis