1-nature of evidence

Question 1

what constitutes audit evidence

Answer 1

audit evidence is info used by the auditor in arriving at the conclusions on which the opinion is based. info from the accounting records underlying the financial statements and other info.

Question 2

what does sufficient and appropriate mean

Answer 2

sufficient refers to quantity

appropriate refers to quality

Question 3

us professional standards classify assertions in three separate categories

Answer 3

account balances -bs

presentation and disclosure-foot notes

classes of transactions and events-I.S

Question 4

there are four assertions related to account balances at period end (balance sheet)

Answer 4

existence- validity, do they exits

completeness-that there are no ommissions

rights and obligations-there are no restrictions related to lia/assets(any restrictions must be disclosed)

valuation and allocation-assets lis and equity interests are measured relative to GAAP.

Question 5

there are for assertions about presentation and disclosure (footnotes)

Answer 5

occurrence and rights and obligations-that disclosed events occurred and pertain to the entity.

completeness-there are no commissions or required disclosure

classification and understandability-to info is appropriately presented, described and clearly expressed

accuracy and valuation-info is disclosed fairly and at appropriate amounts

Question 6

there are 5 assertions related to classes of transactions and events (income statement)

Answer 6

accuracy-transactions/ events are recorded appropriately. similar to valuation

occurence-transactions/events are properly recorded and are valid.

completeness- risk of commission

cutoff-transactions/events have been recored in the proper period

classification-transactions/events have been recorded in the proper accounts

Question 7

f

Answer 7

existence/occurence

accuracy/valuation