In testing the existence assertion for an asset, an auditor ordinarily works from the:

Question

Quizplus · Accepted Answer

Choice "C" is correct. In testing the existence assertion for an asset, an auditor ordinarily works from the accounting records to the supporting evidence. Choice "A" is incorrect. If the auditor works from the financial statements, all items selected will have been recorded (i.e., because they are included in the financial statements). Therefore, starting with the financial statements will not lead to any unrecorded items. Choice "B" is incorrect. Tracing potentially unrecorded items to the financial statements tests for completeness, not existence. Choice "D" is incorrect. Tracing from supporting evidence to the accounting records tests for completeness, not existence.

In Testing the Existence Assertion for an Asset, an Auditor