Chapter 6 - Audit Responsibilities and Objectives

Question 1

What are the 3 Categories of Management’s Assertions?

Answer 1

Transactions and Events
Account Balances
Presentation and Disclosure

Question 2

Assertions about Classes of Transactions and Events:

Answer 2

Occurrence
Completeness
Accuracy
Classification
Cutoff

Question 3

Assertions about Account Balances

Answer 3

Existence
Completeness
Valuation and Allocation
Rights and Obligations

Question 4

Assertions about Presentation and Disclosure

Answer 4

Occurrence and Rights and Obligations
Completeness
Accuracy and Valuation
Classification and Understandability

Question 5

Audit Objectives for Sales Transactions:

Answer 5

MGMT ASSERTION - AUDIT OBJECTIVE
Occurrence - Occurrence
Completeness - Completeness
Accuracy - Accuracy
Posting/Summarization
Classification - Classification
Cutoff - Timing

Question 6

Audit Objectives for Inventory

Answer 6

MGMT ASSERTION - AUDIT OBJECTIVE
Existence - Existence
Completeness - Completeness
Valuation & Allocation - Accuracy
Classification,
Cutoff
Detail Tie-in
Realizable Value
Rights and Obligations - Rights and Obligations