1. All invoices received by a Company subsequent to the yearend but that have not been entered into the financial records as of the date of testing are tested to determine if they were accrued in the financials as of yearend. Answer the following questions:

A. Relevant assertion:

1. Existence 2. Occurrence 3. Completeness 4. Presentation 5. Valuation

B. This is an example:

1. Vouching

2. Tracing

C. It addresses the following risk(s):

1. Expenses are not recorded although incurred before yearend 2. Expenses are recorded prior to yearend although incurred after yearend 3. The quantity of goods or receives are different from the purchase order and invoice

2. An auditor performs a walkthrough for the following reasons:

A. Understand of the process B. Identify risks C. Understand the industry D. Understand if there is a control to mitigate the risk E. Understand the design of the control F. Obtain evidence over test of detail G. Confirm that the controls appear to be operating as designed H. Obtain audit evidence over test of operating effectiveness I. Obtain substantive audit evidence

3. Which of the following best defines error in financial statement auditing context?

A. Error is an unintentional misstatement of the financial statements B. Error is an intentional misstatement of the financial statements C. Error is either an intentional or unintentional misstatement of the financial statements, depending on materiality D. Error is either an intentional or unintentional misstatement of the financial statements, depending on consistency