During an audit of an entity's stockholders' equity accounts, the auditor determines whether there are restrictions on retained earnings resulting from loans, agreements, or state law. This audit procedure most likely is intended to verify management's assertion:

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The audit procedure of determining whether there are restrictions on retained earnings resulting from loans, agreements, or state law is related to the presentation and disclosure assertion. This is because the auditor is verifying whether the entity has properly disclosed any restrictions in the notes to the financial statements, which is a required disclosure under accounting standards.

During an Audit of an Entity's Stockholders' Equity Accounts, the Auditor