Which of the following is one of the five basic tnanoal statement assertions when an internal auditor evaluates controls over financial reporting?

The correct answer is C. Existence or occurrence. One of the five basic financial statement assertions that an internal auditor evaluates when assessing controls over financial reporting is "existence or occurrence." This assertion verifies that assets, liabilities, and equity interests actually exist at a given date, and that…

Performing the Engagement

Question

Options

AReliability or appropriateness
BReasonableness
CExistence or occurrence
DRelevance

How the community answered

(54 responses)

A
2% (1)
B
2% (1)
C
91% (49)
D
6% (3)

Explanation

One of the five basic financial statement assertions that an internal auditor evaluates when assessing controls over financial reporting is "existence or occurrence." This assertion verifies that assets, liabilities, and equity interests actually exist at a given date, and that recorded transactions have actually occurred during a given period. It ensures that the financial statements are not overstated through the inclusion of fictitious or erroneous items.

Topics

#financial statement assertions#existence or occurrence#financial reporting controls#audit assertions

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