In the Revenue Business Process,the Auditor Gathers Evidence to Evaluate

question 27

Multiple Choice

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

• A)occurrence and rights and obligation - disclosed events and transactions have occurred and pertain to the company
• B)cutoff and existence - disclosed events and transactions have occurred in the appropriate period
• C)completeness - financial information is appropriately presented and described
• D)classification and understandability - all disclosures that should have been made have been made
• E)accuracy and valuation - financial information and all other information is disclosed fairly and at appropriate amounts
• F)both A and E
• G)both B and D

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Definitions:

Net Income

The total earnings of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Earnings Per Share

A financial ratio that measures the amount of a company’s profit allocated to each outstanding share of common stock, indicating the company's profitability.

Common Shareholders

Individuals or entities that own common stock in a corporation, thus holding a share of the ownership and typically having voting rights.

Public Company

A company whose shares are traded freely on a stock exchange, subject to regulatory and reporting requirements.