Which of the PCAOB Assertions (A-E)are Best Verified by the Following

question 62

Short Answer

Which of the PCAOB assertions (A-E)are best verified by the following audit procedures (1-4)?
A.Existence or occurrence
B.Rights and obligations
C.Valuation or allocation
D.Completeness
E.Presentation and disclosure
1.Confirming inventory held on consignment by the client with independent third party.2.Consulting the Wall Street Journal for year-end prices of securities held by the client.3.Physically examine all major property and equipment additions.4.Review the aged trial balance for significant past due accounts.

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Definitions:

Mortgage

A secured loan agreement where property or real estate is used as collateral for borrowing money.

Debtor

A party that has incurred a debt by borrowing money or obtaining goods or services on credit.

Debt

An amount of money borrowed by one party from another, typically involving repayment with interest.

Mechanic's Lien

A legal claim against a property for unpaid construction work or supplies, giving the claimant a right to secure payment.