PRINCIPLES OF AUDITING EXAM 2
CERTIFICATION ASSESSMENT 2026 VERIFIED
ANSWERS GRADED A+
◉ Because the entity's personnel might have incentives to record
fictitious transactions, the ___________ assertion is relevant for
revenue transactions.
Answer: occurrence
◉ A management statement that the property, plant and equipment
shown on the balance sheet was owned and available for sale at the
balance sheet date is an example of the ______ assertion.
o completeness
o rights and obligations
o existence
o valuation and allocation.
Answer: o existence
◉ This assertion relates to whether transactions and events have
been recorded in the correct accounting period.
,o Existence
o Accuracy
o Authorization
o Cutoff.
Answer: o Cutoff
◉ A management statement that the entity is making payments and
has control of a leased asset is an example of the ______ assertion.
o valuation and allocation
o classification
o rights and obligations
o completeness.
Answer: o rights and obligations
◉ Whether transactions and events have been recorded in the
proper accounts is the concern of the ____________ assertion..
Answer: Classification
◉ This assertion address whether all assets, liabilities and equity
interests that should have been included as ending balances on the
financial statements have been included.
, o Completeness
o Rights and Obligations
o Valuation and Allocation
o Existence.
Answer: o Completeness
◉ Whether transaction and events are appropriately aggregated or
disaggregated and clearly described in the financial statements is
addressed by the ___________ assertion..
Answer: presentation
◉ Management stating that the cost of plant and equipment is being
appropriately depreciated is an example of the ______ assertion.
o classification
o allocation
o rights and obligations
o completeness.
Answer: o allocation
◉ The ______ assertion relates to whether all recorded transactions
and events have happened and pertain to the entity.
CERTIFICATION ASSESSMENT 2026 VERIFIED
ANSWERS GRADED A+
◉ Because the entity's personnel might have incentives to record
fictitious transactions, the ___________ assertion is relevant for
revenue transactions.
Answer: occurrence
◉ A management statement that the property, plant and equipment
shown on the balance sheet was owned and available for sale at the
balance sheet date is an example of the ______ assertion.
o completeness
o rights and obligations
o existence
o valuation and allocation.
Answer: o existence
◉ This assertion relates to whether transactions and events have
been recorded in the correct accounting period.
,o Existence
o Accuracy
o Authorization
o Cutoff.
Answer: o Cutoff
◉ A management statement that the entity is making payments and
has control of a leased asset is an example of the ______ assertion.
o valuation and allocation
o classification
o rights and obligations
o completeness.
Answer: o rights and obligations
◉ Whether transactions and events have been recorded in the
proper accounts is the concern of the ____________ assertion..
Answer: Classification
◉ This assertion address whether all assets, liabilities and equity
interests that should have been included as ending balances on the
financial statements have been included.
, o Completeness
o Rights and Obligations
o Valuation and Allocation
o Existence.
Answer: o Completeness
◉ Whether transaction and events are appropriately aggregated or
disaggregated and clearly described in the financial statements is
addressed by the ___________ assertion..
Answer: presentation
◉ Management stating that the cost of plant and equipment is being
appropriately depreciated is an example of the ______ assertion.
o classification
o allocation
o rights and obligations
o completeness.
Answer: o allocation
◉ The ______ assertion relates to whether all recorded transactions
and events have happened and pertain to the entity.
