subject: auditing act480

Question 2 (35 Points) For each given case, indicate 1. whether it is an assertion about classes of "Transactions and Events (TE)" or an assertion about "Account Balances (AB)". (2 points) 2. choose the suitable management assertion for the class (2 points) 3. Choose the suitable audit objective for the management assertion (3 points) # Case TE? Management Audit AB? Assertion Objective 1 Company recorded the payment transactions on correct dates. 2 All the buildings exist. 3 Buildings are not under collateral for loan contracts. 4 Salary payments are done to the employees of the company. 5 Payment transactions are presented clear and understandably in the footnotes. Question 3 (50 Points) Please identify the type of threat for each case, and decide how these cases affect auditor's independence. (4 for case and 8.5 for effect) Auditor publicly endorses the services and products of the client company. Type of Threat: Effect on Auditor's Independence: Auditor provides bookkeeping services to the client. Type of Threat: Effect on Auditor's Independence: Auditor's brother is the CEO of the client company. Type of Threat: Effect on Auditor's Independence: CFO of the client and auditor have a lawsuit on-going. Type of Threat: Effect on Auditor's Independence