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. This assertion ensures that the entity has the legal right to the asset and that there are no restrictions or obligations that would limit the entity's ability to use the asset.

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