Below is a management assertion related to a transaction cycle concerning a specific level of an audit objective.

Assertion: Payroll amounts are only recorded for work by existing employees that was actually performed.

Required: For the management assertion above, determine the following:

1. Using the PCAOB nomenclature identify the MOST relevant management assertion (A-E).

A. Existence or Occurrence 

B. Rights and Obligations 

C. Completeness 

D. Valuation and Allocation 

E. Presentation and Disclosure 

2. Determine the applicable transaction cycle (I  V).

I. Revenue and Cash Collection 

II. Acquisition and Disbursement 

III. Payroll and Personnel 

IV. Production 

V. Finance and Investment 

3. Determine the appropriate level of audit objective (1 - 3).

1. Transaction 2. Account Balance 3. Presentation and Disclosure 

ANSWER HERE:

1. 

2. 

3. 

Enter only one answer for parts 1-3, do not use special characters like periods, capitalization is unimportant.