The Effectiveness of General Controls Is an Important Consideration for Audit

question 14

Multiple Choice

The effectiveness of general controls is an important consideration for audit teams when assessing control risk on an audit.Which management assertions are primarily affected by general controls?

• A)Completeness and Accuracy.
• B)Occurrence and Rights and Obligations.
• C)Accuracy and Occurrence.
• D)Completeness and Occurrence.

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Definitions:

Owner's Equity

The residual interest in the assets of a business after deducting liabilities.

Total Liabilities

The aggregate of all debts and financial obligations owed by a company to external entities at any point in time.

Owner's Equity

The residual interest in the assets of a business after deducting its liabilities, representing the owner's claim against the company's assets.

Total Assets

The sum of all assets owned by a company, including current, non-current, tangible, and intangible assets, reflected on the balance sheet.