Which Are the Two Audit Assertions Considered Most Important to the Auditor

question 11

Multiple Choice

Which are the two audit assertions considered most important to the auditor concluding there are no material misstatements in trade receivables at year-end?

• A) Valuation and allocation, and rights and obligations
• B) Existence and occurrence
• C) Occurrence and rights and obligations
• D) Existence and valuation and allocation

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Definitions:

Profitability

The ability of a business or activity to generate a profit or financial gain compared to its costs and investments.

Regional Managers

Individuals responsible for overseeing operations and implementing strategies across various locations within a specific geographic region.

Normative Control

A management approach that shapes employee behavior through organizational norms and values rather than through explicit rules.

Organizational Values

The core principles and beliefs that guide the behaviors and decisions of an organization and its employees.