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Match the Specific Account Balance Audit Objectives with the Codes

Question 76

Matching

Match the specific account balance audit objectives with the codes for the assertion categories.

Premises:
Long-term debt and related income statement balances and stockholders’ equity balances are properly valued in accordance with GAAP.
Recorded long-term debt balances represent debt that exists at the balance sheet date, and related income statement balances represent the effects of long-term debt transactions and events that occurred during the period.
All terms, covenants, commitments, and retirement provisions pertaining to long-term debt are adequately disclosed.
Long-term debt balances represent all payables to long-term creditors at the balance sheet date, and related income statement balances represent the effects of all long-term debt transactions and events that occurred during the period.
Stockholders’ equity balances represent owners’ claims on the reporting entity’s assets.
Responses:
Completeness
Existence or Occurrence
Rights and Obligations
Valuation or Allocation
Presentation and Disclosure

Correct Answer:

Long-term debt and related income statement balances and stockholders’ equity balances are properly valued in accordance with GAAP.
Recorded long-term debt balances represent debt that exists at the balance sheet date, and related income statement balances represent the effects of long-term debt transactions and events that occurred during the period.
All terms, covenants, commitments, and retirement provisions pertaining to long-term debt are adequately disclosed.
Long-term debt balances represent all payables to long-term creditors at the balance sheet date, and related income statement balances represent the effects of all long-term debt transactions and events that occurred during the period.
Stockholders’ equity balances represent owners’ claims on the reporting entity’s assets.
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