When reviewing bank confirmations for any liens on receivables, the auditor is testing the ________ assertion.
A)valuation and allocation
B)rights and obligations
C)existence
D)completeness

Question

Quizplus · Accepted Answer

When reviewing bank confirmations for any liens on receivables, the auditor is testing the rights and obligations assertion, which is concerned with ensuring that the company actually owns the assets and liabilities reported on the financial statements. The existence assertion is concerned with ensuring that the reported assets and liabilities actually exist, the valuation and allocation assertion is concerned with ensuring that the assets and liabilities are fairly valued and allocated, and the completeness assertion is concerned with ensuring that all relevant assets and liabilities are reported on the financial statements.

When Reviewing Bank Confirmations for Any Liens on Receivables, the Auditor