All of the following can assist the auditor in testing the existence assertion for investment securities except:

Question

Quizplus · Accepted Answer

Comparing fair value to cost would not necessarily help in testing the existence assertion for investment securities, as it only provides information about the valuation of the securities, not their actual existence. The other choices can all help in verifying the existence of the securities. Physical examination involves inspecting the securities to determine whether they physically exist. Confirmation with the issuer and custodian involves obtaining written confirmation from parties outside the company who hold or have custody of the securities.

All of the Following Can Assist the Auditor in Testing