ASSERTIONS & AUDIT PLANNING

When performing test counts, the auditor performs procedures over both the completeness and the existence of the inventory. T (TRUE) or F (FALSE)?

Write the correct assertion answers the question:

Is it correctly calculated? Are the estimates, methods correct using the right assumptions?

Cut-off tests designed to detect valid sales that occurred before the end of the year but have been recorded in the subsequent year would provide assurance about management's assertion of...

• Presentation and Disclosure

• Existence

• Rights and obligations

• Completeness

The objective in an auditor's review of credit ratings of a client's customers is to obtain evidence related to management's assertion about...

• Valuation and allocation

• Completeness

• Occurrence

• Rights and obligations

Inquiries of warehouse personnel concerning possible obsolete or slow-moving inventory items provide assurance about the account balance assertion of?  

• Rights and Obligations

• Completeness

• Valuation

• Existence

• Classification

Rights and Obligations is when

• The entity controls rights to expenses and revenues that are obligations of the entity

• The entity holds or controls the rights to assets and liabilities are the obligation of the entity.

• The entity lends monies to their subsidiaries

• The entity holds a loan with a bank

When auditing merchandise inventory at year-end, the auditor performs audit procedures to ensure that all goods purchased before year-end re received before the physical inventory count. This audit procedure provides assurance about which management assertion?

• Existence

• Valuation and Allocation

• Occurrence

• Cut-off

Which of the followwing assertions apply to transactions & events during the period also apply to other events that are reflected in the accounting book? (Can choose more than 1)

• Occurrence

• Cut-off

• Classification

• Completeness

• Accuracy and valuation

Confirmation of accounts receivable provide evidence primarily about which two assertions?

• Existence & Rights and Obligations

• Completeness & Valuation

• Valuation & Rights and Obligations

• Existence & Completeness

Identify inconsistencies FS and Ledgers:

• Existence and Occurrence, Rights and Obligations,

• Accuracy

• Valuation and Allocation

• Presentation and isclosure