Class discussion questions_13 May 2024

Why is the existence assertion addressed?

Evaluate responses using AI:

OFF

Amacars Ltd

Which assertions are NOT addressed?

• Accuracy

• Valuation

• Completeness

• Classification

• Rights

Bricks for Africa (Pty) Ltd

Substantive tests of detail - selected transactions

Indicate which of the following is a valid substantive procedure to perform

• Trace the invoices back to the delivery notes.

• Inspect the selected invoices for the invoiced quantity and compare the quantity to the quantity on the delivery not.

• Recalculate the calculations on the selected invoices.

• Compare the price on the invoices to the corresponding price as per the authorised price list.

• Compare the amounts on the invoice to the amounts recorded in the sales journal.

Bricks for Africa (Pty) Ltd

The following assertions cannot be tested by using only the selected invoices

• Occurrence

• Completeness

• Cut-off

• Classification

• Presentation

Bricks for Africa (Pty) Ltd

Debtors responses

Supa Stones CC

Possible reason for the difference?

Bricks for Africa (Pty) Ltd

Debtors responses

Building Warehouse (Pty) Ltd

Possible reason for the difference?

Bricks for Africa (Pty) Ltd

Debtors responses

Bricks & Company

Possible reason for the difference?