Regarding the given cases, please choose the proper category and assertion. (4 points per cell) Categories are "Transaction and Events and Related Disclosures (TERD)" and "Account Balances and Related Disclosures (ABRD)". Assertions are presented in Table 5-3 (17e of the textbook). Audit objectives are in Table 5-4 for TERD and 5-5 for ABRD (17e of the textbook) # Case Audit Category Assertion Objective 1 Footnote disclosures related to accounts payable are accurate. 2 Payroll transactions are recorded with the correct amounts. 3 Purchase transactions are recorded to the correct dates 4 Receivables have been classified into the proper account. 5 There is no collateral on property, plant, and equipment. Table 8.2 Methods Practitioners Use to Access Acceptable Audit Risk Factors External users' reliance on financial statements Methods used to Assess Acceptable Audit Risk Examine the financial statements, including footnotes, such as the Form 10-K for a publicly held company. Read minutes of board of directors meetings to determine future plans. Read financial analysts' reports for a publicly held company. Discuss financing plans with management. Analyze the financial statements for financial difficulties using ratios and other analytical procedures. Examine historical and projected cash flow statements for the nature of cash inflows and outflows. Follow the procedures discussed in Chapter 7 for client acceptance and continuance. Likelihood of financial difficulties Management integrity