Which Assertion Do Auditors Test When They Trace a Sample

question 79

Multiple Choice

Which assertion do auditors test when they trace a sample of sales, cash receipts, and sales adjustment transactions to their recording in the accounting records?

• A)Completeness
• B)Accuracy
• C)Cutoff
• D)Classification

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Definitions:

Flexible

The ability to easily adapt to new, different, or changing requirements and situations.

Agency Problem

arises in situations where there is a conflict of interest between the principals (owners) and agents (managers) of an organization, leading to potential difficulties in aligning their goals.

Conflict of Interest

A situation where a person's personal interest could potentially interfere with their professional duties or responsibilities, leading to compromised decision-making.

Motivation

Is the set of forces that causes people to behave in certain ways. Individual motivation is also a major determinant of individual performance, but motivation is at the heart of what causes an employee to choose to expend the effort that will support any organizational activity.