If the Auditor Is Testing Long-Lived Asset Account Balances to See

question 33

Multiple Choice

If the auditor is testing long-lived asset account balances to see if they include all relevant transactions that have taken place during the period, what is the primary assertion being tested?

• A) Presentation and Disclosure.
• B) Existence.
• C) Completeness.
• D) Valuation.

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Definitions:

Debit Column

The column in a ledger or financial statement where entries of debit are recorded.

Balance Sheet

Rephrased: The balance sheet is a key financial statement that presents the assets, liabilities, and equity of a company, offering insight into its financial health at a particular moment.

Credits

Entries in accounting that increase liabilities or equity accounts, or decrease asset or expense accounts, reflecting transactions.

Debits

Entries in accounting that are used to record increases in assets or expenses and decreases in liabilities, equity, and revenue.