Current Attempt in Progress

You have already learned that when preparing financial statements, management makes assertions about each account and the related disclosures in the notes. Auditors then gather sufficient appropriate evidence to evaluate management's assertions.

Listed below are different types of potential misstatements that could occur. Match the relevant assertion with each item. The assertions may be used once, more than once, or not at all.

The accounts payable balance might include amounts owed to fictitious vendors.

Payroll expense that was incurred but not paid at the end of the year has not been accrued.

Accounts receivable has not been adjusted for potential bad debts.

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A note disclosure is missing about the client's available line of credit from a financial institution. $$

Repairs and maintenance expense is recorded as depreciation expense.

Inventorv has heen rereived hv the client. hut it has not heen recorded hv the end of the nerind.

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$6.$