8.6 Which financial statement assertion is threatened when the organisation has recorded sales that didn't take place?

1. Occurrence
2. Completeness
3. Accuracy
4. Classification

8.7The assertion of cut-off would be at risk when:

1. the accounting information system accepts a value that is incorrect (e.g. 122 instead of 22).
2. the accounting information system accepts a fictitious sale.
3. the accounting information system includes a sale for the next financial year in this year's revenue figure.
4. a revenue item is classified as an expense when entering the transaction.

8.8Which of the following statements regarding risks for a business is false?

1. Risks can come from both internal and external factors.
2. Risks faced by an organisation will always have consequences for the financial statements.
3. Management needs to be aware of and evaluate the risks that the organisation faces.
4. The risks identified will have varying probabilities of eventuating.