Which of the following would the auditor use to test the existence of investments?
A)Footing the schedule of recorded investments.
B)Confirming or examining recorded investments.
C)Reviewing a schedule of investments sold during the year.
D)Recomputing interest and/or gains and losses.

Question

Quizplus · Accepted Answer

The auditor would use confirmation or examination of recorded investments to test their existence. This involves obtaining independent information from a third party to verify the existence of the investment. Footing the schedule of recorded investments, reviewing a schedule of investments sold during the year, and recomputing interest and/or gains and losses are all procedures that can also be used in the audit, but they would not specifically test for the existence of investments.

Which of the Following Would the Auditor Use to Test