The Auditor Has Decided to Use Accounts Payables Confirmations When

question 62

Multiple Choice

The auditor has decided to use accounts payables confirmations when testing substantive testing for balances.Which two management assertions is she testing?

• A)Existence and completeness
• B)Existence and occurrence
• C)Existence only
• D)Completeness only

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Definitions:

Laundry Costs

Expenses associated with cleaning textile products, such as clothing, linens, and uniforms.

Flexible Budget

A financial plan that is designed to change in response to the level of activity achieved.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a period.

Employee Salaries and Wages

The payment made to employees for their services, either calculated hourly (wages) or over a fixed period (salaries).