Question

11.17 Which assertions are violated if a client includes labour expense related to manufacturing processes as a general expense instead of in cost of inventory? 11.20 When would a client be more likely to (i) overstate or (ii) understate expenses? 11.22 Explain the process of 'roll forward'. When is it used?

（I have three questions about Auditing during my Accounting major study. Please give me details of correct answers for each question in the photo. That's all. Thank you!)

it is "roll" forward, not role.

Answer 1

11.17

accuracy, valuation and allocation is the one of the assertion which violated by considering the labour as general expenses which should be considered as manufacturing cost. the allcoation assertion is violated in this scenario.

11.20

overstate expenses : when the client has more taxabel income and inorder to avoid tax liability

understate expenses : when the client not having enough profit which will effect share value and inorder to avoid such consequences

11.21 roll forward

roll forward is the process of inventory counting , sales figures and purchases of inventory to determine the year end inventory balances

roll forward is used to compare the balances provided by the company management and any differences and discrepanciesshould be noted and invigilated