Reference no: EM132725604

Problem 1: The auditor uses assertions in assessing risks by considering the different types of potential misstatements that may occur, and thereby designing audit procedures that are responsive to the assessed risks. Assertions used by the auditor fall into the following categories

I. Assertions about classes of transactions and events for the period under audit

II. Assertions about account balances at the period end

III. Assertions about presentation and disclosure

a. I, II, and III

b. I and II only

c. II and III only

d. II only

Problem 2: Assertions about classes of transactions and events for the period under audit least likely include

a. Transactions and events that have been recorded have occurred and pertain to the entity

b. All transactions and events that should have been recorded have been recorded

c. Transactions and events have been recorded in the correct accounting period

d. All assets, liabilities and equity interests that should have been recorded have been recorded