Indicate Whether You Agree or Disagree with the Following Statements

Essay

Indicate whether you agree or disagree with the following statements and explain your reasoning.
a) Paula Padgett was performing substantive tests of trade receivables at Neu Lion. She indicated to her staff member, Leona Marshall: "At this client accounts receivable are material in amount. The two assertions that are the most important are the occurrence and accuracy assertions."
b) Emilio Boulrice, CPA was returning from an audit conference where he had entertained his many friends with his musical talents. As he sat in his aisle in the Air Canada flight back home to Montreal, he turned to his friend and said: "Although there is no specific requirement for us to confirm receivables anymore, existence of trade receivables is usually verified by sending confirmations to the client's customers."
c) Mike Gallagher was preparing his staff for the audit of inventory at a major client. He said to his staff: "The two key assertions for inventory are proper cutoff and accuracy."
d) Mona Lincolnshire was assessing the results of her staff's substantive testing procedures. She said: "When performing substantive procedures, the key objective is to determine whether there are material misstatements within the balance being investigated and to quantify the amount of any errors if they exist."