Below is a management assertion related to a transaction cycle concerning a specific level of an audit objective.

Assertion: Amounts recorded as sales represent valid economic exchanges with customers.

Required: For the management assertion above, determine the following:

1. Using the PCAOB nomenclature identify the MOST relevant management assertion (A-E).

A. Existence or Occurrence 

B. Rights and Obligations 

C. Completeness 

D. Valuation and Allocation 

E. Presentation and Disclosure 

2. Determine the applicable transaction cycle (I  V).

I. Revenue and Cash Collection 

II. Acquisition and Disbursement 

III. Payroll and Personnel 

IV. Production 

V. Finance and Investment 

3. Determine the appropriate level of audit objective (1 - 3).

1. Transaction 2. Account Balance 3. Presentation and Disclosure 

ANSWER HERE:

1. 

2. 

3.