What Do Auditors Do When Considering Existence

question 11

Multiple Choice

What do auditors do when considering existence?

• A)Search for evidence to verify that asset, liability, and equity items on the balance sheet actually exist.
• B)Gather evidence to verify recorded assets are owned by the entity and recorded liabilities represent commitments of the entity.
• C)Search for assets, liabilities, and equity items to ensure they have been recorded.
• D)Search for evidence that assets, liabilities, and equity items have been recorded at appropriate amounts.

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Definitions:

Card Draw

A procedure in games or experiments where cards are selected from a deck, sometimes randomly, to determine outcomes or decisions.

Mayoral Election

The electoral process by which a city or town selects its mayor.

Likely Voters

Individuals who are predicted or identified as potential participants in an upcoming election.

Incumbent

A current officeholder, especially in politics, who often has a competitive advantage in elections due to name recognition and previously established networks.