1. When an auditor reviews additions to the equipment (fixed asset) account to make sure that repair and maintenance expenses are not understated, she wants to obtain evidence as to management's assertion regarding

Existence.

2. The PCAOB assertions made by management in financial statements do not include

Accuracy.

For 3, 4, 5: ABC Company had a major sale to XYZ Company. This sale accounted for 20% of the revenue of ABC Company. The auditors performed the audit procedures listed 3 - 5. For each audit procedure select the ASB transaction assertion that is most likely being tested.

3. The auditor reviewed the shipping documents to check the date that product was shipped to XYZ Company

Cutoff

4. The auditor reviewed the shipping documents to ensure that all product included in the sales revenue to XYZ had been shipped.

Completeness

5. The auditor reviewed the invoice sent to XYZ Company to ensure that XYZ had been properly billed.

Accuracy

For 6 & 7: The engineering department at Omni Company built a piece of equipment in the company's own shop for use in the company's operations.

6. The auditor reviewed all work orders that were capitalized as part of the equipment costs. Which of the following is the ASB transaction assertion most closely related to the auditor's testing?

Classification

7. When looking at the ending balance for the fixed asset account the auditor examined all work orders, purchased materials, labor cost reports, and applied overhead that were capitalized as part of the equipment costs. Which of the following is the ASB balance assertion most closely related to the auditor's testing?

Valuation

For 8, 9, & 10: Auditors are auditing the warehouse of Huge Lots Corporation. The auditors performed the audit procedures listed. For each audit procedure select the ASB balance assertion that is most likely being tested.

8. The auditors compared invoices received from suppliers with the cost of inventory listed in the inventory accounts.

.Accuracy

9. The auditors walked through the warehouse looking for obsolete inventory.

Valuation

10. The auditors reviewed vendor invoices to determine if freight costs, taxes, tariffs or other costs had been included in inventory costs.

Valuation

I believe the answers I got are right, but not sure of the reasonings behind them. If someone could help me explain the reasons behind the anwers.