The Auditor Gathers Evidence in the Revenue and the Acquisition

question 8

Essay

The auditor gathers evidence in the revenue and the acquisition and expenditure process to determine whether the financial statements are materially misstated.a.List the two most important assertions in the revenue process.Describe an audit procedure related to each assertion that is frequently performed in this process.b.Describe the most important assertion in the acquisition and expenditure business process and the audit procedure most often used to gather evidence related to this assertion.

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Definitions:

Economic Fluctuations

Variations in the level of economic activity, typically characterized by periods of expansion and contraction in real GDP.

Government Policies

Decisions, plans, or actions that are undertaken by a government to achieve a specific set of goals or address specific issues within a country.

Money Supply

The total amount of monetary assets available in an economy at a specific time.

Recession

A period of significant decline in economic activity spread across the economy, lasting more than a few months.