The Specific Audit Objective, the Entity Has Legal Title to All

question 84

Multiple Choice

The specific audit objective, the entity has legal title to all cash balances shown at the balance sheet date, is derived from the:

• A) existence or occurrence assertion.
• B) completeness assertion.
• C) rights and obligations assertion.
• D) valuation or allocation assertion.
• E) presentation or disclosure assertion.

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Definitions:

Equal Payments

Recurrent payment amounts that are the same in total over a specified period, common in loans and amortizations.

Obligation

A duty or commitment to do something, such as repay a loan or fulfill a contract.

Financial Functions

Mathematical formulas used in finance to analyze and calculate financial figures such as interest rates, returns, payments, and the value of investments.

Compounded Quarterly

Interest on an investment is calculated and added to the principal sum every three months.