Assertions about classes of transactions and events for the period under audit least likely includeSelect one:a.Transactions and events that have been recorded have occurred and pertain to the entity.b.All assets, liabilities and equity interests that should have been recorded have been recorded.c.All transactions and events that should have been recorded have been recorded.d.Transactions and events have been recorded in the correct accounting period.
Question
Assertions about classes of transactions and events for the period under audit least likely includeSelect one:a.Transactions and events that have been recorded have occurred and pertain to the entity.b.All assets, liabilities and equity interests that should have been recorded have been recorded.c.All transactions and events that should have been recorded have been recorded.d.Transactions and events have been recorded in the correct accounting period.
Solution
The question is asking which of the following assertions about classes of transactions and events for the period under audit is least likely to be included.
a. Transactions and events that have been recorded have occurred and pertain to the entity. b. All assets, liabilities and equity interests that should have been recorded have been recorded. c. All transactions and events that should have been recorded have been recorded. d. Transactions and events have been recorded in the correct accounting period.
The answer is (b) All assets, liabilities and equity interests that should have been recorded have been recorded. This assertion is more related to the presentation and disclosure aspect of financial statements rather than the transactions and events for the period under audit. The other three options (a, c, d) are directly related to transactions and events that occurred during the audit period.
Similar Questions
Assertions used by the auditor to consider the different types of potential misstatements that may occur are only assertions about classes of transactions and events for the period under audit.Select one:TrueFalse
An audit requires an understanding of all the control activities related to each significant class of transactions, account balance, and disclosure in the financial statements or to every assertion relevant to them.Select one:TrueFalse
These are events occurring between the date of the financial statements and the date of the auditor's report, and facts that become known to the auditor after the date of the auditor's report.Select one:a.Transactional Eventsb.Engagement Events Proceduresc.Audit Periodd.Subsequent Events
.Question 3How is auditing related to accounting?
Is it possible to think of an accounting transaction or event that affects only: (i) The income statement (ii) The statement of changes in equity (iii) The balance sheet (iv)The statement of cash flows
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