70:

Which of the following statements is correct?

a.

Management assertions are stated in the footnotes to the financial statements.

b.

Management assertions are explicitly expressed representations about the financial statements.

c.

Management assertions are provided to the auditor in the assertions letter, but are not disclosed on the financial statements.

d.

Management assertions are directly related to the financial reporting framework used by the company, usually U.S. GAAP or IFRS.

The planning phase of the audit would comprise:

a.

Estimating the combined misstatement.

b.

Estimating total misstatement in the segment.

c.

Setting materiality for the financial statements as a whole.

d.

Comparing the combined estimated with preliminary judgment.