The Specific Audit Objective for the Audit of Investments, recorded

question 34

Multiple Choice

The specific audit objective for the audit of investments, recorded investment asset and equity balances represent investments that exist at the balance sheet date, relates to 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:

Organic Structures

Organic structures refer to flexible, adaptive organizational structures that are characterized by low levels of formalization, decentralized decision-making, and a broad scope of control.

Mechanistic

Pertains to organizational structures that are highly formalized and centralized, with strict hierarchies and clear, rigid procedures.

Authority

The power or right to give orders, make decisions, and enforce obedience, often established by a position in a hierarchical organization.

Organizations

Groups of people who come together to achieve specific goals, following a particular structure and set of regulations.