Selecting a sample of paid notes and tracing interest to the general ledger account is a test of the PCAOB assertion for:
A)accounting.
B)valuation or allocation.
C)completeness.
D)existence or occurrence.

Question

Quizplus · Accepted Answer

Completeness is the assertion that all transactions and events that should have been recorded have been recorded. Tracing interest to the general ledger account is a test of completeness because it ensures that all interest that was earned has been recorded.

Selecting a Sample of Paid Notes and Tracing Interest to the General