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:

Decision-Making Processes

Processes through which individuals or organizations make choices among alternative courses of action to achieve their objectives.

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of prioritizing resource allocation.

Production Possibility Curve

A graphical representation showing the maximum combination of goods and services that can be produced in a given period with available resources.

Opportunity Cost

The expense incurred by not choosing the second-best option when making a decision.