An Auditor Scans a Client's Investment Records for the Period

question 832

Multiple Choice

An auditor scans a client's investment records for the period just before and just after the year-end to determine that any transfers between categories of investments have been properly recorded. The primary purpose of this procedure is to obtain evidence about management's financial statement assertions of:

• A) Rights and obligations, and existence.
• B) Valuation and accuracy, and rights and obligations.
• C) Existence, and understandability and classification.
• D) Understandability and classification, and valuation and accuracy.

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Definitions:

Minimum Value

The lowest possible amount, price, or level that something can reach.

National Defense

Government efforts, strategies, and structures to protect a country against external threats or military aggression.

Federal Spending

The total expenditure of the federal government, including spending on defense, welfare, infrastructure, and other public services.

Health Care

The organized provision of medical services to individuals or a community to maintain or improve health.