When Testing for the ________ Assertion, Auditors Search for Evidence

question 38

Multiple Choice

When testing for the ________ assertion, auditors search for evidence to verify that asset, liability and equity items on the balance sheet actually exist.

• A)presentation and disclosure
• B)existence
• C)occurrence
• D)valuation and accuracy

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Definitions:

Log-Linear Form

A mathematical representation where variables are transformed using a logarithm, making multiplicative relationships appear linear.

Elasticity Values

Quantitative measures of elasticity, such as price elasticity of demand or supply, indicating how responsive one variable is to changes in another variable.

Demand Determinants

Factors that influence the quantity of a product or service that consumers wish to buy at various prices.

Cross-Price Elasticity

An economic measure of the responsiveness in the quantity demanded of one good when the price for another good changes.