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)

Question

Quizplus · Accepted Answer

Both statements are true. Auditors do use management assertions to assess the risk of material misstatements for both account balances and presentations/disclosures.

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