Which Assertion Related to Investments Is Tested When the Auditor

question 92

Multiple Choice

Which assertion related to investments is tested when the auditor examines the documents for any restrictions?

• A)Existence.
• B)Rights.
• C)Completeness.
• D)Valuation.

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Definitions:

New Partner

An individual or entity that joins an existing business partnership, contributing capital or resources with the expectation of sharing profits and losses.

Admitted

An insurance term referring to insurers who are licensed and authorized to do business in a particular state or country.

Partnership

A business organization where two or more individuals manage and operate the business in accordance with the terms and objectives set out in the Partnership Deed.

Contributing Assets

Assets given by owners or shareholders as part of their investment in the company.