Question

Verification of assets is done to ascertain :
(X) Existence of asset
(Y) Ownership of asset
(Z) Possession of asset

• A. (X) and (Y)
• B. (Y) and (Z)
• C. (X) and (Z)
• D. (X), (Y) and (Z)

Answer 1

The correct option is D (X), (Y) and (Z)

It is the duty of the auditor to physically inspect the assets and their recording in the books of accounts and verify the legal and official documents to ascertain the existence, ownership, possession, classification and valuation of assets of an entity.