chap 6 transaction related audit objectives

Question 1

what is the general transaction related audit objective for the management assertion of “Cutoff” for transactions and events

Answer 1

timing

Question 2

what is the general transaction related audit objective for the management assertion of “Classification” for transactions and events

Answer 2

classification

Question 3

after the general transaction related audit objectives are determined, specific transaction related audit objectives can be developed for what?

Answer 3

each material class of transaction

Question 4

what are the 2 general transaction related audit objective for the management assertion of “Accuracy” for transactions and events

Answer 4

Accuracy Posting and summarization

Question 5

occurrence/comleteness deals with potential overstatement and occurence/completeness deals with potential understatement

Answer 5

occurrence completeness

Question 6

what does the general objective of accuracy deal with?

Answer 6

the accuracy of the info for accounting transactions

Question 7

what does the general objective of posting and summarization deal with ?

Answer 7

with accuracy of the transfer of information from recorded transactions in journals to subsidiary records and the general ledger.

Question 8

what does the general objective of completeness deal with?

Answer 8

whether all transactions that should be included in the journals have actually been included

Question 9

what does the general objective of occurrence deal with?

Answer 9

whether recorded tansactions have acutally occurred

Question 10

what are the 6 general transaction related audit objectives ?

Answer 10

1. Occurrence—Recorded transactions exist. 2. Completeness—Existing transactions are recorded. 3. Accuracy—Recorded transactions are stated at the correct amounts. 4. Posting and Summarization—Recorded transactions are properly included in the master files and are correctly summarized. 5.Classification—Transactions included in the client’s journals are properly classified. 6. Timing—Transactions are recorded on the correct dates

Question 11

what does the general objective of timing deal with?

Answer 11

if a transaction is recorded on the day it toook place

Question 12

At least one specific transaction related audit objective should be included for each general transaction related audit objective unless what?

Answer 12

the auditor believes that the general transaction related audit objective is not relevant or is unimportant in the circumstances

Question 13

what is the general transaction related audit objective for the management assertion of “Occurrence” for transactions and events

Answer 13

Occurence

Question 14

what does the general objective of classification deal with?

Answer 14

whether transactions are included in the appropriate accounts

Question 15

what is the general transaction related audit objective for the management assertion of “Completeness” for transactions and events

Answer 15

Completeness