LR & Co., Chartered Accountants, are conducting the statutory audit of Beta Exports Ltd. for the financial year ended 31st March 2026. During…
CA Intermediate · Auditing and Ethics · RTP · September 2026
LR & Co., Chartered Accountants, are conducting the statutory audit of Beta Exports Ltd. for the financial year ended 31st March 2026. During the audit, the engagement team is verifying the borrowings of the company. It is observed that the company has obtained a loan denominated in foreign currency. While checking the year-end balances, the auditor verifies the closing exchange rate and recalculates the loan amount to ensure that it has been properly restated in the financial statements in accordance with applicable accounting standards. Based on above scenario, identify the assertion that the auditor is trying to verify:
Suggested Answer and Working Notes:
Correct Answer: Option (C)
(c) Valuation
Topics: Audit of Items of Financial Statements
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