Question:Appropriate evidence under ISA 500 Audit evidence is relevant and reliable. In order for evidence to be relevant it must relate to which of the following financial statement assertions?
A. All assets or liabilities are recorded in line with accounting standards.
B. All assets or liabilities are included within the accounting records.
C. Legal title to all assets is held by the organisation.
D. All assets or liabilities occur.
E. An asset or liability exists.
The correct answers are:An asset or liability exists; All assets or liabilities are included within the accounting records; All assets or liabilities are recorded in line with accounting standards.
Legal title to all assets is held by the organisation is incorrect as legal title is not the issue but rather ownership in substance and this is different as risks and rewards are considered rather than legal title.
All assets or liabilities occur is incorrect as occurrence is an assertion for transactions on the statement of profit or loss and other comprehensive income, rather than for items on the statement of financial position.
高顿网校温馨提醒
各位考生,2015年ACCA备考已经开始,为了方便各位学员能更加系统地掌握考试大纲的重点知识,帮助大家充分备考,体验实战,高顿网校开通了全免费的
ACCA题库(包括精题真题和全真模考系统),题库里附有详细的答案解析,学员可以通过多种题型加强练习。
戳这里进入ACCA免费题库>>>