When Management Presents the Financial Statements to the Auditor,management Makes

question 97

Multiple Choice

When management presents the financial statements to the auditor,management makes several assertions about the financial statements.Which of the following is not one of these assertions?

• A)existence or occurrence
• B)evaluation
• C)accuracy
• D)classification

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Definitions:

Budget Slack

The intentional underestimation of revenues or overestimation of expenses within a budget to create a cushion for unexpected situations.

Employee Self-interests

Employee self-interests are the motivations and personal goals that drive the behaviour of individuals within an organization, which may or may not align with the company's objectives.

Cash Receipts

The collection of cash, typically by a business from its customers, for goods or services provided.

Credit Sales

Credit sales are transactions where the customer purchases goods or services with an agreement to pay at a later date.