The auditor has examined the financial statements,particularly the cash flow statement,and the notes to the financial statements to determine that all relevant information is presented clearly.Which audit assertion is associated with this audit test?

Question

Quizplus · Accepted Answer

The assertion associated with this audit test is understandability, as the auditor is examining the financial statements and the notes to ensure that all relevant information is presented in a clear and understandable manner. Classification refers to whether transactions and events are recorded in the appropriate accounts, allocation refers to whether amounts are assigned to appropriate accounting periods, and valuation refers to whether amounts are accurately measured and recorded.

The Auditor Has Examined the Financial Statements,particularly the Cash Flow