When considering each material type (or class)of transaction during the audit,which general transaction-related audit objectives are assessed during the audit?
A)those transaction-related audit objectives where there is the highest risk of error
B)all five transaction-related audit objectives
C)those transaction-related audit objectives where there are poor internal controls
D)primarily completeness,occurrence,and accuracy,since they typically have the most errors

Question

Quizplus · Accepted Answer

Audit objectives related to transactions include completeness, occurrence, accuracy, authorization, and cutoff. All five objectives should be assessed during the audit to ensure that transactions are recorded accurately and completely in the financial statements. The risk of error and the quality of the internal controls may impact the assessment of these objectives, but they should all be considered regardless. Therefore, option B is the best choice. Option D is not correct as it assumes that only three objectives are typically associated with errors, which is not necessarily true.

When Considering Each Material Type (Or Class)of Transaction During the Audit,which