AUDITING & ASSURANCE SERVICES CONNECT AC
10th Edition
ISBN: 9781259292057
Author: MESSIER
Publisher: MCG
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Chapter 5, Problem 5.31P
To determine
Introduction: Management assertions refers to the claims made by the management in the financial statements upon which the auditor relies only after testing these assertions.
To explain: The examples of a misstatement that could occur for revenue transactions for each of the given management assertions.
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Students have asked these similar questions
An audit trail is a step-by-step record by which accounting data can be traced to its source. Therefore, Vouching is used primarily to test which of the following assertions about classes of transaction?
Select one:
a.Accuracy.
b.Completeness.
c. Cut-off
d. Occurrence
Which of the following is often called a compensating control?a. transaction authorizationb. supervisionc. accounting recordsd. independent verification
Management accounting data are expected
to be objective and verifiable.
Select one:
O True
False
Chapter 5 Solutions
AUDITING & ASSURANCE SERVICES CONNECT AC
Ch. 5 - Prob. 5.1RQCh. 5 - Prob. 5.2RQCh. 5 - Prob. 5.3RQCh. 5 - Prob. 5.4RQCh. 5 - Prob. 5.5RQCh. 5 - Prob. 5.6RQCh. 5 - Prob. 5.7RQCh. 5 - Prob. 5.8RQCh. 5 - Prob. 5.9RQCh. 5 - Prob. 5.10RQ
Ch. 5 - Prob. 5.11RQCh. 5 - Prob. 5.12RQCh. 5 - Prob. 5.13RQCh. 5 - Prob. 5.14RQCh. 5 - Prob. 5.15RQCh. 5 - Prob. 5.16RQCh. 5 - Prob. 5.17MCQCh. 5 - Prob. 5.18MCQCh. 5 - Prob. 5.19MCQCh. 5 - Prob. 5.20MCQCh. 5 - Prob. 5.21MCQCh. 5 - Prob. 5.22MCQCh. 5 - Prob. 5.23MCQCh. 5 - Prob. 5.24MCQCh. 5 - Prob. 5.25MCQCh. 5 - Prob. 5.26MCQCh. 5 - Prob. 5.27MCQCh. 5 - Prob. 5.28MCQCh. 5 - Prob. 5.29MCQCh. 5 - Prob. 5.30PCh. 5 - Prob. 5.31PCh. 5 - Prob. 5.32PCh. 5 - Prob. 5.33PCh. 5 - Prob. 5.34PCh. 5 - Prob. 5.35PCh. 5 - Prob. 5.36PCh. 5 - Prob. 5.37PCh. 5 - Prob. 5.38PCh. 5 - Prob. 5.39P
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Similar questions
- Reliability means that data are reasonably complete and accurate. Accuracy refers to the extent that recorded data reflect the actual underlying information. In this regard which of the following is the suitable example of reliability of the data? O a. Information may be more reliable when it is obtained from dependent sources outside the entity O b. Information may be more reliable when it is obtained from independent sources outside the entity O c Information may be more reliable when it is obtained from the management of the entity O d. Information may be more reliable when it is obtained from engagement team membersarrow_forwardTransactions need to be classified appropriately. This internal control objective relates to all of the following assertions EXCEPT for accuracy. O completeness. valuation. O allocation.arrow_forwardExplain how management assertions, general balance-relatedaudit objectives, and specific balance-related audit objectives are developed for anaccount balance such as accounts receivable.arrow_forward
- What are the key control objectives required for a well-designed general ledger and reportinginformation system?arrow_forwardBriefly provide your opinion whether an auditor wishing to assess the adequacy of separation of functions examine a data flow diagram or system flowchart. Why.arrow_forwardWhich of the following are principles of internal control? (Check all that apply.) Multiple select question. Increase revenues. Establish responsibilities. Maintain adequate records. Reduce vendor payables. Perform regular and independent reviews. Divide responsibility for related transactions.arrow_forward
- Ensuring that all material transactions processed by the information system are valid and in accordance with management’s objectives is an example ofa. transaction authorization. b. supervision. c. accounting records. d. independent verification.arrow_forwardWhat is data inconsistency? occurs when a system produces correct and consistent data the practice of gathering data and ensuring that it is uniform, accurate, and consistent occurs when the same data element has different values O refers to the overall management of the availability and usability of company dataarrow_forwardBriefly provide your opinion whether an auditors wishing to assess the adequacy of separation of functions examine a data flow diagram or system flowchart. Whyarrow_forward
- Explain how the cost of resources is assigned to activities. What is meant by the phrase unbundling the general ledger accounts?arrow_forwardShould an auditor wishing to assess the adequacy of separation of functions examine a data flow diagram or a system flowchart? Why?arrow_forwardWhich of the following sets of application characteristics of an accounting application might influence the selection of data entry devices and media for a computerized accounting system?a. Timing of feedback needs relative to input, need for documentation of an activity, and the necessity for reliability and accuracy.b. Cost considerations, volume of input, complexity of activity, and liquidity of assets involved. c. Need for documentation, necessity for accuracy and reliability, volume of output, and cost considerations. d. Relevancy of data, volume of input, cost considerations, volume of output, and timing of feedback needs relative to input. e. Type of file used, reliability of manufacturer’s service, volume of output, and cost considerations.arrow_forward
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