ACCY 360 COMPREHENSIVE
ACCOUNTING EXAM SCRIPT 2026 FULL
QUESTIONS AND CORRECT ANSWERS
◉ Categories of management assertions
Answer: Classes of transactions and events, account balances, and
presentation and disclosure.
◉ Existence or occurrence
Answer: Assets or liabilities exist, and recorded transactions actually
occurred.
◉ Completeness
Answer: All transactions and accounts that should be included are
included.
◉ Valuation or allocation
Answer: Assets, liabilities, equity, revenue, and expenses are
recorded at appropriate amounts.
◉ Rights and obligations
,Answer: The company has rights to assets and obligations for
liabilities.
◉ Presentation and disclosure
Answer: Financial statement components are properly classified,
described, and disclosed.
◉ Audit evidence
Answer: All information used by the auditor in reaching conclusions
supporting the audit opinion.
◉ Nature of audit evidence
Answer: The form audit evidence takes, such as invoices, contracts,
ledgers, worksheets, and reconciliations.
◉ Sufficiency
Answer: The quantity of audit evidence.
◉ Appropriateness
Answer: The quality of audit evidence.
◉ Relevance
Answer: Evidence relates to the assertion being tested.
,◉ Reliability
Answer: Evidence is dependable and trustworthy.
◉ Effect of greater risk on evidence
Answer: Greater risk of misstatement requires more audit evidence.
◉ Effect of higher quality evidence
Answer: Higher quality evidence reduces the quantity needed.
◉ Reliable evidence tends to come from
Answer: Independent outside sources, effective controls, direct
auditor knowledge, documentary evidence, and original documents.
◉ Audit procedures
Answer: Specific acts performed by the auditor to gather evidence
about assertions.
◉ Types of audit procedures
Answer: Risk assessment procedures, tests of controls, and
substantive procedures.
, ◉ Audit program
Answer: A set of audit procedures prepared to test assertions for a
financial statement component.
◉ Vouching
Answer: Agreeing a journal or ledger to source documents.
◉ Assertion tested by vouching
Answer: Occurrence.
◉ Tracing
Answer: Agreeing source documents to a journal or ledger.
◉ Assertion tested by tracing
Answer: Completeness.
◉ Observation
Answer: Watching a process or procedure being performed by
others.
◉ Inspection of tangible assets
Answer: Physically examining an asset.
ACCOUNTING EXAM SCRIPT 2026 FULL
QUESTIONS AND CORRECT ANSWERS
◉ Categories of management assertions
Answer: Classes of transactions and events, account balances, and
presentation and disclosure.
◉ Existence or occurrence
Answer: Assets or liabilities exist, and recorded transactions actually
occurred.
◉ Completeness
Answer: All transactions and accounts that should be included are
included.
◉ Valuation or allocation
Answer: Assets, liabilities, equity, revenue, and expenses are
recorded at appropriate amounts.
◉ Rights and obligations
,Answer: The company has rights to assets and obligations for
liabilities.
◉ Presentation and disclosure
Answer: Financial statement components are properly classified,
described, and disclosed.
◉ Audit evidence
Answer: All information used by the auditor in reaching conclusions
supporting the audit opinion.
◉ Nature of audit evidence
Answer: The form audit evidence takes, such as invoices, contracts,
ledgers, worksheets, and reconciliations.
◉ Sufficiency
Answer: The quantity of audit evidence.
◉ Appropriateness
Answer: The quality of audit evidence.
◉ Relevance
Answer: Evidence relates to the assertion being tested.
,◉ Reliability
Answer: Evidence is dependable and trustworthy.
◉ Effect of greater risk on evidence
Answer: Greater risk of misstatement requires more audit evidence.
◉ Effect of higher quality evidence
Answer: Higher quality evidence reduces the quantity needed.
◉ Reliable evidence tends to come from
Answer: Independent outside sources, effective controls, direct
auditor knowledge, documentary evidence, and original documents.
◉ Audit procedures
Answer: Specific acts performed by the auditor to gather evidence
about assertions.
◉ Types of audit procedures
Answer: Risk assessment procedures, tests of controls, and
substantive procedures.
, ◉ Audit program
Answer: A set of audit procedures prepared to test assertions for a
financial statement component.
◉ Vouching
Answer: Agreeing a journal or ledger to source documents.
◉ Assertion tested by vouching
Answer: Occurrence.
◉ Tracing
Answer: Agreeing source documents to a journal or ledger.
◉ Assertion tested by tracing
Answer: Completeness.
◉ Observation
Answer: Watching a process or procedure being performed by
others.
◉ Inspection of tangible assets
Answer: Physically examining an asset.
