The Specific Audit Objective, recorded Cash Balances Are Realizable at the Amounts

question 62

Multiple Choice

The specific audit objective, recorded cash balances are realizable at the amounts stated on the balance sheet and agree with supporting schedules, 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:

Holder In Due Course

A person who has obtained a negotiable instrument in good faith, for value, and without notice of any defects, thereby having certain legal protections.

Claim In Recoupment

A legal claim or defense allowing a defendant in a lawsuit to assert a right to reduce the amount of damages owed by claiming a corresponding claim against the plaintiff.

Good Faith

The honest intention to act without taking an unfair advantage over another party, often an underlying principle in contracts.

Authenticity

The quality of being genuine or not counterfeit, and the verification of something as being true or legitimate.