In the Acquisition and Expenditure Process,the Auditor Gathers Evidence to Evaluate

question 38

Multiple Choice

In the acquisition and expenditure process,the auditor gathers evidence to evaluate management's assertions about the presentation and disclosure of the accounts in the business process.These assertions are

• A)Occurrence and rights and obligations - disclosed events and transactions have occurred and pertain to the company.
• B)Completeness - all disclosures that should have occurred have occurred.
• C)Classification and understandability - financial information is appropriately expressed and described.Disclosures are clearly presented.
• D)Accuracy and valuation - financial information and all other information is disclosed appropriately and at fair amounts.
• E)Existence or occurrence - for classes of transactions.

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Definitions:

Reader Benefits

The advantages or valuable effects that a reader can derive from a piece of writing, often used to persuade or engage the audience.

Extrinsic Benefits

Extrinsic benefits are rewards or advantages that come from external sources and are not inherent to the task itself, such as salary, bonuses, or public recognition.

Audience Benefits

Advantages or positive outcomes that the audience can gain from a product, service, or message.

Four-drive Theory

A motivational theory proposing that humans are driven by four basic needs: acquiring, bonding, learning, and defending.