ACCA AA · Chapter 9 · Question 3 of 10
The auditor selects a sample of assets from the non-current asset register and physically inspects them. Which assertion is primarily being tested?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Existence
Explanation
Testing from the register to the physical asset confirms that recorded assets exist. To test completeness the auditor works in the opposite direction, from physical assets to the register. Physical inspection gives little evidence of ownership, which is better tested by inspecting purchase invoices or title documents.
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