QUESTION 31

1. The financial statements of an organization reflect a set of management assertions about the financial health of the business. All of the following describe types of assertions except

   	a.	that all employees are properly trained to carry out their assigned duties
   	b.	that all of the assets and equities on the balance sheet exist
   	c.	that all transactions on the income statement actually occurred
   	d.	that all allocated amounts such as depreciation are calculated on a systematic and rational basis

3 points

QUESTION 32

1. Which of the following is not an implication of section 302 of the Sarbanes-Oxley Act?

   	a.	Auditors must interview management regarding significant changes in the design or operation of internal control that occurred since the last audit.
   	b.	Management must disclose any material changes in the companys internal controls that have occurred during the most recent fiscal quarter.
   	c.	The board of directors must certify quarterly and annually their organizations internal controls over financial reporting.
   	d.	Auditors must determine whether changes in internal control have materially affected (or are likely to affect) internal control over financial reporting.