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.