Which of the following is the most relevant assertion with regards to the audit of cash?
A)Existence
B)Rights and obligations.
C)Valuation and allocation.
D)Presentation and disclosure.

Question

Quizplus · Accepted Answer

The most relevant assertion with regards to the audit of cash is existence, which means ensuring that the cash balances recorded in the financial statements actually exist and are owned by the company. This is because cash is a highly liquid asset that can be easily misappropriated or exaggerated, and therefore, its existence needs to be verified through physical cash counts and confirmations from banks. Other assertions such as rights and obligations, valuation and allocation, and presentation and disclosure are also important in the audit of cash, but they are relatively less significant than existence.

Which of the Following Is the Most Relevant Assertion with Regards