Final answer:
Presentation and disclosure objectives are crucial in the audit of financial instruments to ensure financial statements are accurate and comply with accounting standards, providing clear information on financial positions and risks.
Step-by-step explanation:
True, presentation and disclosure objectives are indeed important when auditing financial instruments. High-quality financial reporting is reliant on the proper presentation of financial information, which ensures that financial statements are prepared in accordance with relevant accounting standards and framework. Auditors assess whether financial instruments are presented with appropriate classifications and measurements and whether the disclosures in the notes to the financial statements provide enough information for the reader to understand the entity's financial instrument positions and associated risks.