Chapter 5

Audit evidence includes only written information used by the auditor in arriving at an opinion

about the fairness of financial statements.

• True

• False

The auditor gathers audit evidence to test management's assertions.

• True

• False

Management assertions fall into four main categories.

• True

• False

The classification assertion refers to transactions and events being recorded in the correct

accounting period.

• True

• False

The completeness assertion refers to ensuring that transactions and events that should have

been recorded actually have been recorded.

• True

• False

The cutoff assertion relates to whether transactions and events have been recorded in the

correct accounting period.

• True

• False

Audit procedures are designed to test management assertions.

• True

• False

The relevance of audit evidence or specific audit procedures depends on the assertion being

tested.

• True

• False

The auditor must use his or her professional judgment to determine the amount of audit

evidence to be gathered.

• True

• False

The sufficiency of evidence refers to the quality of audit evidence.

• True

• False