Which of the Following Audit Objectives Relates to the Management

question 15

Multiple Choice

Which of the following audit objectives relates to the management assertion of existence?

• A)A transaction is recorded in the proper period.
• B)A transaction actually occurred (i.e., it is real).
• C)A transaction is properly presented in the financial statements.
• D)A transaction is supported by detailed evidence.

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Definitions:

Nominal Value

The face value of a financial instrument, such as a bond or stock, as stated by the issuer, without accounting for inflation or market value changes.

Unsheltered Investment Income

Income from investments that is not protected from taxes, meaning it is fully exposed to taxation.

Social Security Taxes

Taxes collected from employees and employers to fund the Social Security program, which provides retirement, disability, and survivorship benefits.

Income Cap

A limit on the amount of income an individual or entity can receive, often used in tax or investment contexts to limit earnings or tax benefits.