In Testing the Existence Assertion for an Asset, an Auditor

question 68

Multiple Choice

In testing the existence assertion for an asset, an auditor ordinarily works from the:

• A)potentially unrecorded items to the financial report.
• B)financial report to the potentially unrecorded items.
• C)supporting evidence to the accounting records.
• D)accounting records to the supporting evidence.

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Definitions:

Honesty

The quality of being fair and truthful, an essential component of ethical behavior and trust-building in personal and professional relationships.

Stereotyping

The tendency to generalize about people in a certain social category and ignore variations among them.

Aspects

Different parts, features, or components of a situation, idea, or object.

Perceptual Tendency

The inclination to perceive information, situations, or objects in a specific way based on past experiences and personal biases.