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

question 4

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 are expressed 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 fairly and at the appropriate amounts.
• E)Existence or occurrence - for classes of transactions.

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Definitions:

Opponent-Process Reaction

A theory suggesting that emotions are regulated by mechanisms that operate in opposing pairs; for example, an increase in happiness leads to a decrease in sadness.

General Adaptation Syndrome

describes the three-stage process (alarm, resistance, exhaustion) that the body undergoes while responding to stress, as identified by Hans Selye.

Nervous Exhaustion Condition

A non-specific medical term used historically to describe mental and physical symptoms of stress, anxiety, or depression.

Cancer

A disease characterized by the uncontrolled growth and spread of abnormal cells in the body.