Confirmations of accounts receivable provide evidence primarily about which two assertions?
a. existence and rights & obligations
b. valuation and rights & obligations
c. completeness and valuation
d. existence and completeness
Answer: a. existence and rights & obligations
The revenue cycle of a company generally includes which accounts?
a. inventory, accounts payable, and general expenses
b. cash, notes payable, and capital stock
c. cash, accounts receivable, and sales
d. inventory, general expenses, and payroll
Answer: c. cash, accounts receivable, and sales
When auditing the existence assertion for an asset, auditors proceed from the
a. general ledger back to the supporting original transaction documents
b. supporting original transaction documents to the general ledger
c. financial statement amounts back to the potentially unrecorded items
d. potentially unrecorded items forward to the financial statement amounts
Answer: a. general ledger back to the supporting original transaction documents
