AUD Deck 6-Audit Evidence-Specific Audit Areas

Question 1

Kiting-

Answer 1

Is an overstatement of the true cash balance at year-end caused by recording the receipt, while failing to record the disbursement, associated with a transfer between cash accounts.

Question 2

The four assertions that Professional Standards identify for account balances at the end of the period:

Answer 2

1) existence
2) completeness
3) rights & obligations
4) valuation & allocation