1.

Management assertions are:

a. Stated in the footnotes to the financial statement.

b. Implied or express representations about the accounts in the financial statements

c. Explicitly expressed representations about the financial statements

d. Provided to the auditor in the assertions letter but are not disclosed in the financial
statements of the entity.

2. Assertions used by the auditor fall into the following categories, except:

a. Assertions about the faithful representations

b. Assertions about account balances at period end

c. Assertions about classes of transactions and events

d. Assertions about presentation and disclosure

3. Which of the following is not a financial statement assertion relating to account balances? A.
Completeness.

b. Rights and obligations

c. Existence

d. Valuation and competence.

4. Assertions about account balances at the period-end include valuation and allocation, which
means that

a. Assets, liabilities and equity interest exist

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

c. Assets, liabilities and equity interests are included in the financial statements at
appropriate amounts and any resulting valuation or allocation adjustments are
appropriately recorded.

d. The entity holds or controls the rights to assets, and liabilities are the obligations of the
entity.

5. The assertion of cut-off means that:

a. All transactions and events that should have been recorded

b. Amounts and other data relating to recorded transactions and events have been
recorded appropriately
 c. Transactions and events have been recorded in the correct accounting period

d. Transactions and events have been recorded in the proper accounts

6. The assertions of occurrence mean that:

a. All transactions and events that should have been recorded are recorded.

b. Amounts and other data relating to recorded transactions and events have been
recorded appropriately.

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

d. Transactions and events have been recorded in the proper accounts.

7. Which description refers to completeness assertion?

a. All disclosures that should have been included in the financial statements have been
included.

b. Disclosed events, transactions and other matters have occurred and pertain to the
entity.

c. Financial information is appropriately presented and describe disclosures are clearly

expressed.
 d. Financial and other information are disclosure fairly and appropriate amounts.

8. Confirming proper title to equipment supports which of the following assertions?

a. Existence or occurrence c. Presentation and disclosure

b. Insurance coverage d. Rights and obligations

9. The auditor notices that a client’s cash-basis financial statements a prepared with accrual basis
financial titles. This situation bears on which financial statement assertion?

a. Valuation or allocation c. Rights and obligations

b. Presentation and disclosure d. Completeness

10. There are three categories of financial statement assertions: Assertions pertaining to account
balances at period end, assertions pertaining to classes of transactions and events during the
period, and assertions pertaining to presentation and disclosure. Which of the following is a
financial statement assertion that is common to all three categories?

a. Existence c. Completeness
b. Classifications d. Occurrence