Which of the following is not one of the assertions made by management about an account balance. Rights and **Required** For each specific balance-related audit objective, identify the appropriate management assertion. Required: i) For each assertion, indicate whether it is an assertion about classes of transactions and events or an assertion about account balances. Cutoff tests designed to detect purchases made before the end of the year that have Payments are made on July 15 and January 15. -Valuation of assets and liabilities. D)Rights and obligations. A manager or partner who has a comprehensive knowledge of the client's business and Which of the following is the most accurate statement regarding audit evidence? A) Audit evidence gathered by an auditor from outside an enterprise is reliable. Presentation and disclosure 2) If reported sales for 2010 erroneously include sales that occur in 2011, the assertion violated on the 2010 statements would be A May 24, 2024 · Assertions in auditing are claims or representations made by management regarding the accuracy and completeness of financial statements. Please identify the PCAOB assertion illustrated by each assertion. Assertions about account balances at period end b. Which of the following is not one of the assertions made by management about an account balance? Your solution’s ready to go! Enhanced with AI, our expert help has broken down your problem into an easy-to-learn solution you can count on. , If the auditor believes that Which of the following is an assertion that is made in the financial statements by management concerning each major account balance? Classification and understandability. In this particular case, we shall seek to determine which among the given items is not a standard assertion regarding the accuracy and reliability of an account balance made by management with respect to financial statements. Account Balance Assertions. May 27, 2024 · Financial statement assertions are fundamental to the integrity and reliability of financial reporting. Completeness. 3 days ago · Study with Quizlet and memorize flashcards containing terms like 1. Your solution’s ready to go! Our expert help has broken down your problem into an easy-to-learn solution you can count on. 3 days ago · Which of the following is not one of the assertions made by management about an account balance? A) Relevance B) Existence C) Valuation D) Rights and obligations 3 days ago · Which of the following is not a financial statement assertion made by management? -Existence of recorded assets and liabilities. The assertion is that the full amounts of all transactions were recorded, without error. This audit procedure most likely is intended to verify management's assertion of A. -Effectiveness of internal control. Provide one piece of documentation that is relevant to accounts receivable that provides evidence of the following assertions. C) The auditor must obtain sufficient appropriate audit evidence. Relevance. The partner performing the quality review of the audit. Neither, Which of the following is not an assertion relating to classes of transactions? A. Rights and obligations B. It means that management implicitly Study with Quizlet and memorize flashcards containing terms like Which of the following assertions is relevant to whether the company owns the cash accounts as of the balance sheet date? a. QUESTION 15 In the consideration of internal control, the auditor is basically concerned that it provides reasonable assurance that: O Management cannot override the system, Misstatements have been prevented or detected Controls have not been circumvented by collusion. Q&A Audit assertions, financial statement assertions, or management’s assertions, are the claims made by the management of the company on financial statements. Classification, Which of the following is not g. True False, Analytical procedures are seldom used for planning an audit engagement because they are substantive procedures. , Which of the following assertions is relevant to whether the cash balances reflect the true design the audit to provide complete assurance of detecting such illegal acts. These assertions form a consolidated basis from which external auditors are able to develop a set of audit procedures. During an audit of an entity's stockholders' equity accounts, the auditor determines whether there are restrictions on retained earnings resulting from loans, agreements or state law. yes/yes b. The CPA is unable to review the predecessor auditor's working papers. c. Rights and. Which of the following is not one of the assertions made by management about an account balance?Multiple ChoiceExistence. Transaction-Level Assertions. Adequacy C. Management assertions are implied or expressed representations by management about classes of transactions and the related accounts and disclosures in the financial Study with Quizlet and memorize flashcards containing terms like 11. Existence/occurrence. The CPA lacks a thorough understanding of the prospective client's operations and industry. no/yes d. Investors and analysts rely on accurate statements to evaluate a Study with Quizlet and memorize flashcards containing terms like Which of the following would be most likely to raise a question concerning possible illegal acts?, Which of the following is an assertion that is made in the financial statements by management concerning each major account balance?, Which of the following statements is accurate about "fraud risk factors" considered when 3 days ago · Which of the following is not a financial statement assertion made by management?-Existence of recorded assets and liabilities. Sales cutoff at year-end is proper. Your solution’s ready to go! Enhanced with AI, our expert help has broken down your problem into an easy-to-learn solution you can count on. For example, inspection of records and documents related to the collection of receivables after the period end may Study with Quizlet and memorize flashcards containing terms like 3. ACC 640 Project One Guidelines and Rubric Competencies In this project, you will demonstrate your mastery of the following competencies: Apply Generally Accepted Auditing Standards to the audit Q&A Using the Keystone financial data, client suitability interview, and AS 2110 standards provided in the Supporting Materials section, perform an Study with Quizlet and memorize flashcards containing terms like The objective of an audit of the financial statements is an expression of an opinion on A) the fairness of the financial statements in all material respects. The audit objective that all transactions and accounts that should be presented in the financial statements are in fact included is related to which of the PCAOB assertions? A Existence B Rights and Obligations C Completeness D Valuation, 2. g. Rights and obligation D. Completeness 3. AACSB: Analytic AICPA BB: Industry AICPA FN: Risk Analysis Bloom's: Remember Difficulty: Easy Learning Objective: 06-05 Describe the manner in which an audit is affected by the auditors' assessment of audit risk and materiality. Study with Quizlet and memorize flashcards containing terms like Audit committees should be made up of the most qualified directors regardless of whether they are part of management of the company. Which one of the following assertions is not made by management in placing an item in the financial statements? a. Direct controls D. The prospective client has fired its prior auditor. ABC Company has a December 31 fiscal year-end. There are four types of account balance assertions: Existence: The assets, equity balances, and liabilities exist at the period ending time. 5 days ago · Management assertions fall into the following three classifications. Existence or occurrence C. , 6-3 Implicit or explicit assertion made by the management that asset and liability balances stated in the balance sheet actually exist at the balance sheet date and that revenue and expense 3 days ago · Which of the following is NOT a category of assertions that management makes about the accounting information in financial statements? a. The company will not have financial difficulty. Presentation and Disclosure C. no/no, Which of the following is not one of the assertions made by management about an account balance? Jul 3, 2024 · Assertions are made to attest to the authenticity of information on balance sheets, income statements, and cash flow statements. 2. The following five items are classified as assertions related to transactions, mostly in regard to the income statement: Accuracy. 26. -Completeness of recorded assets and liabilities. b. Rights and obligations. presentation and disclosure e. B) Oral representations made by management are not valid evidence. d. B. 5 to help you answer this question. We would like to show you a description here but the site won’t allow us. C. A management statement that the inventory shown on the balance sheet was available for sale at the balance sheet date is an example of the _____ assertion existence The ______ assertion relates to whether all recorded transactions and events have happened and pertain to the entity. NAME OF ASSERTION ii) Indicate the name of the assertion made by management. Study with Quizlet and memorize flashcards containing terms like 6) Which of the following situations would be most likely to heighten an auditor's concern about the risk of fraudulent financial reporting? A) Large amounts of liquid assets that are easily convertible into cash. Relevance D. B) If management asserts that recorded sales transactions represent exchanges of goods or services that actually took place, they are asserting to completeness. Completeness C. -Completeness of recorded assets and liabilities. B)Existence. . B) the accuracy of the annual report. Assertions about presentation and disclosure d. Assertions about classes of transactions for the period under audit c. h. 07 A given set of audit procedures may provide audit evidence that is rel-evant to certain assertions but not to others. Assertions help auditors assess the reliability of the financial information presented by management. Study with Quizlet and memorize flashcards containing terms like Auditors gather evidence to restrict this risk to the appropriate level. yes/no c. issue, or does issue, a report on subject matter or an assertion about the subject matter that is the responsibility of another party. Receivables have not been sold or discounted. Valuation. C) the accuracy of the balance sheet and income statement. Existence 2. Study with Quizlet and memorize flashcards containing terms like Which of the following is not one of the AICPA categories of assertions? A) assertions about classes of transactions and events for the period under audit B) assertions about financial statements and correspondence to GAAP C) assertions about account balances at period end D) assertions about presentation and disclosure, If a For each of the following scenarios, indicate whether or not independence related SEC rules are being violated, assuming that the audit entity is a public company. completeness 2. After the client's treasurer has signed the request, it was mailed by the assistant treasurer. Study with Quizlet and memorize flashcards containing terms like Which of the following is not one of management's assertions? A. Which of the following factors most likely would cause a CPA to not accept a new audit engagement? A. Classification. Account Balances C. Legality. True False, Preliminary arrangements with clients should be set forth in 3 days ago · Study with Quizlet and memorize flashcards containing terms like Which of the following statements about audit evidence is true? A. Completeness, Which of the following is commonly known as the "except for" opinion? A. In other words, audit assertions are sometimes called financial statements Assertions or management assertions. A) Both assertions are relevant to classes of transactions and events and account balances. Study with Quizlet and memorize flashcards containing terms like Audits of financial statements are designed to obtain reasonable assurance of detecting material misstatements due to: errors/misappropriation of assets a. Valuation and skepticism. If an auditor is performing procedures related to the information that is contained in the client's pension footnote, he/she is most likely to obtain Which one of the following assertions is not made by management in placing an item in the financial statements? Pg 187-189 a. direct controls c. Aug 21, 2024 · If the audit process reveals that any of the five assertions are incorrect, then they may conduct extra audit procedures, or their opinion may not be a clear audit opinion. A. A beginning staff accountant who has had no other work related to the engagement. Question: Which of the following is not an assertion that is made in the financial statements by management concerning each major account balance? Completeness. Multiple choice question. e. The moment the financial statements are produced, the assertions or the claims of management also exist, e. Valuation B. evidence may not compensate if it is of a lower quality. Study with Quizlet and memorize flashcards containing terms like Financial statement assertions are established for classes of transactions: A. The difficulty and expense of obtaining audit evidence about an account balance is a valid basis for omitting the test. Classification B. Valuation. apply specific audit procedures that will ferret out such illegal acts. Assertions made by management about the accounts receivable account are given below. , Assertions made by management about the accounts receivable account are given below. Reliability. , all items in the income statement are assured to be complete and accurate, etc. completeness. These assertions serve as the basis for auditors to design their audit procedures and tests. Rights and obligations C. Valuation or allocation. Valuation and allocation, What do you call a statement or representation, explicit or implied, made by management regarding Question: 11. O Valuation. a. Which of the following is not one of the assertions made by management about an account balance? A. Which of the following ASB balance assertions is the auditor testing? Study with Quizlet and memorize flashcards containing terms like For intangible assets, controls should be designed to do which of the following? Identify and account for intangible asset impairments Develop amortization schedules that reflect the remaining useful life of patents or copyrights associated with the asset Provide reasonable assurance that decisions are appropriately made as to assemble prospective financial statements based on the assumptions of the entity's management without expressing any assurance. Additionally, if all the assertions of the five preceding assertions are declared false, then it means the management is committing fraud in the financial statement. All of these. Disclaimer of Opinion D. The sufficiency and appropriateness of . Required: For each assertion, indicate whether it is an assertion about classes of transactions and events or an assertion about account balances. Jul 3, 2024 · There are five different financial statement assertions attested to by a company's statement preparer. Account Balances and Disclosures B. Valuation and allocation 4. existence or occurrence. 3 days ago · Study with Quizlet and memorize flashcards containing terms like 3. completeness 12. These include assertions of accuracy and valuation, existence, completeness, rights and Jul 16, 2024 · Assertions are claims made by business owners and managers that the information included in company financial statements -- such as a balance sheet, income statement, and statement of cash flows Which of the following is not one of the assertions made by management about an account balance? A. Disclosures D. valuation or Study with Quizlet and memorize flashcards containing terms like Cycle approach to auditing, Advantages of dividing the audit into different cycles:, Define what is meant by a management assertion about financial statements. The successor auditor has the responsibility to initiate contact with the predecessor auditor to ask about the client before the engagement is accepted; the predecessor has no responsibility to initiate this contact, even when aware of matters bearing on the integrity of management. You are encouraged to reference Exhibit 1. Inherent Material misstatement Detection Control, Several specific items, such as the fact that all known liabilities are reflected in the financial statements, are included in the written ______________ ____________ the CPAs obtain Study with Quizlet and memorize flashcards containing terms like Which assertion is common to both (i) classes of transactions and events for the period under audit and (ii) account balances at the period-end? A. D. Unqualified Opinion B. existence or occurrence b. Account balance assertions apply to the balance sheet items, such as assets, liabilities, and shareholders’ equity. Adverse Opinion Study with Quizlet and memorize flashcards containing terms like To be effective, analytical procedures performed near the end of the audit should be performed by: A. Indicate the name of the assertion made by management. C)Valuation. Definition: The implicit or explicit claims by the management on the preparation and appropriateness of financial statements and disclosures are known as management assertions. Therefore, it can be seen that when management prepares financial statements, they make five assertions regarding each line […] Which of the following is a management assertion regarding account balances at the period end? The entity holds or controls the rights to assets, and liabilities are obligations of the entity. Existence Answer to O Relevance. Valuation and Allocation B. DQ 1: The following are various management assertions related to sales and account receivable. Existence. The operational auditor is not concerned with whether the audited activity is generating information in compliance with financial accounting standards. Cutoff D. Assertions about the quality of source Transmute Company paid or collected during the current year the following items: Insurance premium paid 15,400 Interest collected 30,900 Salaries paid 135,200 The following balances have been Q&A D Question 25 1 pts The following data were reported by Son Gohan Company during the current year: Rent receivable - January 1 100,000 Rent receivable The operational auditor is seeking to help management use resources in the most effective manner possible. Existence As one of the year-end audit procedures, the auditor instructed the client's personnel to prepare a confirmation request for a bank account that had been closed during the year. Accuracy B. **Management assertion about account Balances** 1. The audit objective that all balances include items owned by the client is related most closely to which one of the ASB balance assertions? a. C) Financial management's Financial Statement Assertions are the claims that are made by the organization’s management pertaining to the financial statements. Qualified Opinion C. B) Low growth and profitability as compared to other entity's in the same industry. D Which of the following is <b>not </b>one of the assertions made by management about an account balance? A)Relevance. It is also known are financial statements assertion or audit assertion. D) the accuracy of the financial statements. A client's accounting records can be sufficient audit evidence to support the financial statements. rights and obligations d. These assertions, made by management, underpin the accuracy of a company’s financial statements and serve as a basis for auditors to evaluate whether these statements present a true and fair view of the entity’s financial position. valuation or The following are various management assertions related to sales and account receivable. Transactions and events have been recorded in the proper accounts. 1) Which of the following assertions is NOT made by management in placing an item in the financial statements? A. Which of the following is a management assertion regarding account balances at the period end? Transactions and events that have been recorded have occurred and pertain to the entity. Rights and obligations. 3 days ago · Which of the following is not an assertion that is made in the financial statements by management concerning each major account balance? Completeness. Discussion and Analysis D. Briefly explain why or why not. The auditor vouches the January 15, 2010 payment to the liabilities recorded on the December 31, 2009 balance sheet.