In the revenue business process,the auditor gathers evidence to evaluate management's assertions about presentation and disclosure of the accounts in the revenue process.These assertions are
A)occurrence and rights and obligation - disclosed events and transactions have occurred and pertain to the company
B)cutoff and existence - disclosed events and transactions have occurred in the appropriate period
C)completeness - financial information is appropriately presented and described
D)classification and understandability - all disclosures that should have been made have been made
E)accuracy and valuation - financial information and all other information is disclosed fairly and at appropriate amounts
F)both A and E
G)both B and D

Question

Quizplus · Accepted Answer

Management's assertions in the revenue process are typically classified as either transaction-related or assertion-related. Transaction-related assertions are occurrence, completeness, and accuracy. Assertion-related assertions are classification, understandability, cutoff, and rights and obligations. Accuracy and valuation (E) falls under transaction-related assertions, while occurrence and rights and obligations (A) fall under assertion-related assertions. Therefore, the best choice is F, both A and E.

In the Revenue Business Process,the Auditor Gathers Evidence to Evaluate