8.11 Who is responsible for minimising the business risk of an organisation?

8.21 In planning the audit of a client's liabilities, an auditor derived the following specific objectives from management's financial statement assertions:

1. Liabilities are not valued below the amount expected to be paid in accordance with an applicable accounting standard.

2. The total of the schedule of purchase ledger balances agrees to the balance on the purchase ledger control account.

3.All liabilities represent obligating events occurring before the year-end.

4.Current liabilities include all amounts owed by the company that fall due within 12 months of the

year-end.

5. All liabilities that were settled before the year-end have been excluded from the balance sheet.

Required

For each specific audit objective (items 1-5), identify the management assertion from which it was derived.

8.12 Describe the auditor's responsibility with regard to business risk and financial statement assertions.