1. Negative confirmations are generally a more effective way of obtaining audit evidence compared to positive confirmations as auditors dont have to wait to receive the confirmation or perform alternate procedures.

A. True B. False

2. As it relates to the search for unrecorded liabilities audit procedure, circle all that apply.

Most relevant assertion: (i) Completeness (ii) Existence (iii) Occurrence

Other: (iv) Involves selecting a sample of liabilities recorded in the general ledger and checking to see subsequent cash payment for such invoices (v) Involves selecting subsequent cash payments and obtaining invoices for such payments and determining if they were recorded prior to yearend (vi) Involves selecting invoices that were recorded subsequent to yearend and determining if they were accrued as of yearend if services or goods were received prior to yearend

3. Cut-off is one of the management assertions identified in the PCAOB standards

A. True B. False