An auditor discovered the following errors and irregularities while performing tests of  controls: 1. Goods received on June 3 were never placed in the storeroom but instead were taken  to the receiving clerk’s home.  REQUIRED: a. To which financial statement assertion does each error or irregularity relate?  Answer : Rights and obligations - Can someone please explain to me why the answer is rights and obligation for assertion.

Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter4: Professional Liability, Auditor Judgment Frameworks, And Professional Responsibilities
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 An auditor discovered the following errors and irregularities while performing tests of 
controls:
1. Goods received on June 3 were never placed in the storeroom but instead were taken 
to the receiving clerk’s home. 

REQUIRED:

a. To which financial statement assertion does each error or irregularity relate? 

Answer : Rights and obligations

- Can someone please explain to me why the answer is rights and obligation for assertion.

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