Audit Assertions

How many basic audit assertions are there?

• 8

• 4

• 6

• 7

Which Audit assertion deals with transactions

and events that have been recorded have occurred and relate to the entity

• Existence

• Accuracy

• Obligation

• Valuation

Rights and Obligations is when:

• The entity controls rights to expenses and revenues

  that are obligations of the entity

• The entity holds or controls the rights to

  assets and liabilities are the obligation of the entity.

• The entity holds a loan with a bank

• The entity lends monies to their subsidiaries

What is ultimately the risk associated with

Cutoff?

• The company may overstate revenue

• The company may understate revenue

• The company may understate payables

• The company may understate debt

The audit assertion that ensures transactions and

events have been recorded in the proper accounts is

• Cutoff

• Accuracy

• Obligations

• Confirmations

Which of the following audit assertions can be

defined as assets, liabilities and equity interests are included in the financial statements at appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded

• Rights and Obligations

• Accuracy

• Existence

• Valuation

What does it mean to observe something?

• Re-perform the task yourself

• Watch the client perform the task

• Scan documents

• Ensure that documents trace back to the general

  ledger detail

Which of the following areas are audit confirmations typically NOT sent out

• AR

• AP

• CASH

• DEBT

Footing and CrossFooting are typically fuctions of

• Reperformance

• Recalculation

• Accuracy

• Valuation