Final answer:
All of the provided statements are correct concerning audit objectives and controls. Audit objectives are identified for various financial areas, and corresponding controls are identified to meet these objectives. Using the five control activities as reminders is beneficial for auditors when assessing controls.
Step-by-step explanation:
When identifying audit objectives and existing controls, it is indeed true that all of the provided statements are correct. Audit objectives are set for classes of transactions, account balances, and presentation and disclosures. These objectives help guide the audit process, ensuring a systematic and thorough evaluation of the financial records and operations of an entity. To satisfy each objective, the auditor must identify appropriate controls which are processes and procedures put in place by the company to prevent or detect errors and fraud.
Additionally, it is helpful for the auditor to use the five control activities, which include segregation of duties, proper authorization, adequate documents and records, physical control over assets and records, and independent checks on performance, as reminders of what types of controls could be in place and need to be assessed during the audit. By evaluating whether these controls are effectively designed and implemented, an auditor can draw conclusions about the reliability and integrity of the financial reporting process.