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32) When an auditor knows that an illegal act has occurred, she must:A) report it to the proper governmental authorities.B) consider the effects on the financial statements, including the adequacy of disclosure.**C) withdraw from the engagement.D) issue an adverse opinion.33) Why does the auditor divide the financial statements into smaller segments?
34) If a short-term note payable is included in the accounts payable balance on the financial statement, there is a violation of the:35) Management makes the following assertions about account balances:36) Which of the following statements is true about the completeness and occurrence assertions?A) Both assertions are relevant to classes of transactions and events and account balances.B) If management asserts that recorded sales transactions represent exchanges of goods or services that actually took place, they are asserting to completeness.C) Violations of the occurrence assertion relate to account overstatements.**D) The failure to record a sale that did occur is a violation of the occurrence assertion.37) Which of the following assertions is described as "this assertion addresses whether all transactions that should be included in the financial statements are in fact included"?38) Which of the following assertions is described as "this assertion addresses whether all transactions that
should be included in the financial statements are in fact included"?
39) The auditor is determining that the the correct selling price was used for billing and that the quantity of goods shipped was the same as the quantity billed. She is gathering evidence about which transaction related audit objective?