If an Auditor Is Performing Procedures Related to the Information

question 51

Multiple Choice

If an auditor is performing procedures related to the information that is contained in the client's pension footnote,he/she is most likely obtain evidence concerning management's assertion about

• A)rights and obligations.
• B)existence.
• C)valuation.
• D)presentation and disclosure.

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Definitions:

Expenses

Outflows of resources or incurrences of liabilities that result in a decrease in the equity of a company, other than distributions to owners.

Accounts Receivable

Money owed to a company by its customers for goods or services provided on credit.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts to check the arithmetic accuracy of the accounts.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.