An auditor is testing the 'Presentation and Disclosure' assertion. Which of the following is a primary concern?

Answer options:

Whether the transactions actually occurred.

Whether the balances are valued correctly.

Whether all required disclosures have been included in the financial statements.

Whether the entity has legal title to assets.

How to approach this question

Presentation = Format/Notes. Did they include all the notes GAAP requires?

Full Answer

C.Whether all required disclosures have been included in the financial statements.✓ Correct

Whether all required disclosures have been included in the financial statements.

The Completeness assertion for Presentation and Disclosure addresses whether all disclosures that should have been included in the financial statements have been included.

Common mistakes

Confusing Presentation assertions with Account Balance assertions.

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