Assurance Staff Interview Questions and Answers

Assertions for trade receivables include existence, completeness, valuation, rights and obligations, and presentation and disclosure.

• Existence - Ensure that the trade receivables actually exist and are not fictitious.

• Completeness - Confirm that all trade receivables are included and nothing is omitted.

• Valuation - Verify that trade receivables are recorded at their correct value.

• Rights and obligations - Ensure that the entity has the legal right to collect the trade receivable...read more

Audit risk is the risk that the financial statements are materially misstated.

• Audit risk consists of inherent risk, control risk, and detection risk.

• Inherent risk is the risk of material misstatement before considering internal controls.

• Control risk is the risk that a material misstatement could occur and not be prevented or detected on a timely basis by internal controls.

• Detection risk is the risk that the auditor's procedures will not detect a material misstatement.

• Audit ri...read more