Question 3

Red, White and Blue, CPAs typically selects the last five shipping documents of its financial statement audit clients and assesses whether sales are recorded in the proper period. This test is most likely related to which assertion? Group of answer choices cutoff.

accuracy

disclosure

.classification

Question 4 A limitation of internal controls is that

Group of answer choices

management may override a control that is otherwise suitably designed.

a new employee may misunderstand his/her duties.

employees may become lax over time in carrying out the designed procedures.

all of the above are limitations