Question

An auditor is reconciling the amounts included in the long-term debt footnotes to the information examined and supported in the audit files for long-term debt. Which audit objective is being satisfied?

A) accuracy and valuation
B) occurrence and rights and obligations
C) completeness
D) classification and understandability

Answer 1

The audit objective being satisfied in this case is B) occurrence and rights and obligations.

Step-by-step explanation:

This objective focuses on ensuring that the long-term debt reported in the financial statements actually exists and that the company has the legal rights and obligations associated with it.

By reconciling the amounts included in the long-term debt footnotes to the information in the audit files, the auditor is verifying the occurrence and rights and obligations of the debt.