What Are the Benefits of Considering Management Assertions in the Audit

question 109

Multiple Choice

What are the benefits of considering management assertions in the audit process?

• A)Assertions help guide the procedures conducted by auditors.
• B)Assertions guarantee that fraud will be found.
• C)It is possible to eliminate audit risk when assertions are used.
• D)Assertions eliminate the risk that inventory will be stolen.

---

Definitions:

Segregation

The enforced separation of different racial groups in a country, community, or establishment.

Richard Nixon

The 37th President of the United States, known for his foreign policy achievements and the Watergate scandal which led to his resignation.

South Vietnam

The former, non-communist republic located in the southern half of Vietnam, existing from 1954 until its merger with North Vietnam in 1976 following the Vietnam War.

Attrition Strategy

A military strategy aimed at wearing down an opponent through continuous losses in personnel and material.