Andy Szypula, the Audit Manager, Was Explaining to His New

question 38

Multiple Choice

Andy Szypula, the audit manager, was explaining to his new audit team how management assertions work when assessing the risk of material misstatements. He made two statements to
His audit team:
Auditors use assertions for account balances.
Auditors use assertions for presentations and disclosures.
Which of these statements were true?

• A) (i) only
• B) (ii) only
• C) both (i) and (ii)
• D) neither (i) nor (ii)

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Definitions:

Stone Wall

A structure made of stones usually used as a boundary marker or a protective barrier.

Carved Figureheads

Decorative sculptures located on the prow of ships, traditionally representing characters or animals.

Prosthetic Rubber Device

A device made from rubber designed to replace a missing body part, improving function or appearance.

Fake Blood

an artificial substance used to simulate real blood in theatrical productions, movies, or for other effect purposes.