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QUESTION 53
You are assigned to audit accounts over the capital acquisition and repayment cycle. What are the primary audit objectives you would most focus on?
a.
accuracy and completeness.
b.
accuracy and valuation
c.
completeness and existence.
d.
occurrence and valuation.
2 points
QUESTION 54
Retained earnings, bonds payable and accrued interests are examples of common accounts in the acquisition and repayment cycle. A primary characteristic of all accounts in this cycle include
a.
Many transactions affect the account balances due to the high volume of trading that occurs within these accounts.
b.
Materiality is not normally a consideration in these accounts due to the high transaction amounts.
c.
There is a legal contract between the company and holder of stock, bond, or similar ownership document.
d.
All of the above characteristics apply
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