ACCT 3222 Exam 2 Key Terms questions with complete solutions

Assertion correct answer: Statement or representation, explicit or implicit, made by management regarding the recognition, measurement, presentation, and disclosure of items included in the financial statements and notes Relevant assertion correct answer: An assertion that has a reasonable possibility of containing a material misstatement or misstatements that would cause the financial statements to be materially misstated and, therefore, has a meaningful impact on whether the account is fairly stated Audit program correct answer: A listing of details of the audit procedures to be used when testing controls, conducting detailed substantive audit procedures, and completing the audit Audit evidence correct answer: Information gathered by the auditor that is used when forming an opinion on the fair presentation of a client's financial statements Sufficient correct answer: Refers to the quantity of audit evidence gathered Appropriate correct answer: Refers to the quality of audit evidence gathered Relevance correct answer: Refers to the logical connection with the assertion being tested