When testing for accuracy, an auditor searches for evidence
A) to verify that a recorded transaction or event took place and relates to the entity.
B) that all disclosures that should have been included in the financial statements have been included.
C) that transactions and events have been recorded at appropriate amounts.
D) to verify that recorded assets are owned by the entity.

Question

Quizplus · Accepted Answer

Accuracy in auditing refers to the correctness of the amounts and other data related to transactions and events. Choice C directly addresses the concern of ensuring transactions and events are recorded at their appropriate amounts, which is essential for the accuracy aspect of financial statement assertions.

When Testing for Accuracy, an Auditor Searches for Evidence