Which One of the Following Is NOT a Proper Match

question 56

Multiple Choice

Which one of the following is NOT a proper match of audit objectives with management assertions?

• A) Timing matches with valuation or allocation.
• B) Completeness matches with completeness.
• C) Existence matches with existence/occurrence.
• D) Classification matches with presentation/disclosure.

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Definitions:

Expansionary Gap

A situation where the total demand in an economy exceeds its potential output, leading to inflationary pressures.

Recessionary Gap

A situation in which the real GDP is lower than the potential GDP, leading to unemployment and underutilized resources.

Supply Shock

A supply shock is an unexpected event that suddenly changes the supply of a product or commodity, leading to sudden changes in its price.

Recessionary Gap

A situation where the real Gross Domestic Product (GDP) is lower than the potential GDP, indicating underperformance in the economy.