Module 17

Question 1

balance sheet assertions

Answer 1

existence
completeness
AVA
classification
R&O
presentation

Question 2

transaction p&l assertions

Answer 2

accuracy
cut-off
occurence
completeness
classification
presentation

Question 3

audit sampling selection

Answer 3

characteristics of population
ROMM
audit efficiency

Question 4

substantive testing procedures

Answer 4

reasonableness
trend analysis
large and unusual items review

Question 5

types of evidence

Answer 5

natural - physically witness event or asset
created - invoice, board minutes, letter from clients bank
rational argument - circumstantial evidence
testimonial - verbal

Question 6

existence

Answer 6

balances exist and are genuine

Question 7

completeness

Answer 7

balances/ transaction that should have been recorded have been

Question 8

AVA

Answer 8

balances recorded at appropriate amounts in accordance with standards

Question 9

classification

Answer 9

balances/ transaction are recorded in the proper accounts

Question 10

R&O

Answer 10

entity holds rights to assets and liabilities are obligations of entity

Question 11

presentation

Answer 11

balances/ transactions appropriately aggregated/ disaggregated and clearly described

Question 12

accuracy

Answer 12

amounts and other data transactions have been recorded appropriately

Question 13

cut-off

Answer 13

transactions are recorded in correct period

Question 14

occurence

Answer 14

did the transaction actually take place in the period and does the company have the right to recognise it