In confirming with an outside agent,such as a financial institution,that the agent is holding investment securities in the client's name,an auditor most likely gathers evidence in support of ASB balance assertion of existence and
A) Valuation.
B) Rights and obligations.
C) Completeness.
D) Accuracy.

Question

Quizplus · Accepted Answer

In confirming the existence of investment securities held by an outside agent, an auditor is primarily concerned with supporting the balance assertion of rights and obligations. This is because the auditor wants to ensure that the investments are owned by the client (rights) and that there are no undisclosed obligations tied to them. While accuracy and completeness could also be relevant assertions, they are less directly impacted by this confirmation inquiry. Valuation is often supported through other audit procedures.

In Confirming with an Outside Agent,such as a Financial Institution,that