The Three Audit Assertions Particularly Important to Enable the Auditor

question 33

Multiple Choice

The three audit assertions particularly important to enable the auditor to conclude that there are no material misstatements in cash as at year-end are:

• A) existence, completeness and classification.
• B) rights and obligations, cut-off and occurrence.
• C) occurrence, completeness and accuracy.
• D) classification, occurrence and valuation.

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Definitions:

Balance of Payments Deficit

A situation where the total of the country's imports and its external payments exceeds the total of its exports and external receipts.

Net Inflow

The measurement of the total amount of money being transferred into a particular entity, sector, or system, minus the amount leaving it.

Net Outflow

The total amount of money leaving a country or economy as a result of outflows exceeding inflows, often related to international trade, investments, and financial transactions.

Gross Domestic Product (GDP)

Sum of all goods and services produced within a country’s boundaries during a specific time period, such as a year.