An Auditor's Purpose in Auditing the Information Contained in the Pension

question 45

Multiple Choice

An auditor's purpose in auditing the information contained in the pension footnote most likely is to obtain evidence concerning management's assertion about:

• A)rights and obligations.
• B)existence.
• C)presentation and disclosure.
• D)valuation.

---

Definitions:

Settlement Date

The date on which a trade is finalized, and the buyer must make payment and the seller must deliver the asset.

Option Contract

A financial contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price within a certain period.

Right

In finance, the prerogative to buy or sell a security under specific conditions, often associated with options.

Specific Asset

An identifiable and tangible asset owned by a company, often critical to its operations or unique in nature, usually with specific investment criteria.