An auditor most likely would review an entity's periodic accounting for the numerical sequence of shipping...
An auditor most likely would review an entity's periodic accounting for the numerical sequence of shipping documents and invoices to support management's financial statement assertion of:
Multiple Choice
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existence or occurrence.
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completeness.
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rights and obligations.
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presentation and disclosure.
Homework Answers
The answer is the 2nd Option : Completeness
Reason: This is to make sure that there are no omissions and to make sure that assets and liabilities are recorded properly. In this case, checking the numerical sequence of documents and invoices reduces the chance of omission.
1st Option Existence Or Occurence is incorrect because auditor can easily track the occurrence from the shipping documents to the Sales Invoices to support Existence or Occurence.
3rd Option Rights and Obligations is incorrect because the auditor shall check the agreement documents between the company and the customer to confirm the right as well as the obligations of each parties.
4th Option Presentation and Disclosure is incorrect because the auditor can check the Financial Statements and the Invoices for the proper disclosure and presentation requirements. Auditor can confirm that the accounts are described and classified in accordance with generally accepted accounting principles, and financial statement disclosures are complete, appropriate, and clearly expressed
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An auditor most likely would review an entity's periodic
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