Audit - Assertions

what description matches with Assertion a

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what description matches with Assertion b

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what description matches with Assertion c

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what description matches with Assertion d

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For each management assertion, indicate an example of a misstatement that could occur for revenue transactions.

Fictitious revenue.

Revenue recorded, goods not shipped, or services not performed.

• OCCURANCE

• COMPLETENESS

• AUTHORIZATION

• ACCURACY

• CUTOFFS

For each management assertion, indicate an example of a misstatement that could occur for revenue transactions.

Revenue transactions recorded in the wrong period.

• OCCURANCE

• COMPLETENESS

• AUTHORIZATION

• ACCURACY

• CUTOFFS

For each management assertion, indicate an example of a misstatement that could occur for revenue transactions.

Goods shipped or services performed, revenue not recorded.

• OCCURANCE

• COMPLETENESS

• AUTHORIZATION

• ACCURACY

• CUTOFFS

For each management assertion, indicate an example of a misstatement that could occur for revenue transactions.

Revenue transaction not properly classified as revenue (i.e. improperly recorded as other income or as an offset to expenses).

• CLASSIFICATION

• COMPLETENESS

• AUTHORIZATION

• ACCURACY

• CUTOFFS

For each management assertion, indicate an example of a misstatement that could occur for revenue transactions.

Revenue transaction recorded at an incorrect dollar amount.

Revenue transactions not posted correctly to the sales journal or customers’ accounts in accounts receivable subsidiary ledger.

Amounts from sales journal not posted correctly to general ledger.

• CLASSIFICATION

• COMPLETENESS

• AUTHORIZATION

• ACCURACY

• CUTOFFS

For each management assertion, indicate an example of a misstatement that could occur for revenue transactions.

Goods shipped or services performed for a customer who is a bad credit risk.

Shipments made or services performed at unauthorized prices or on unauthorized terms.

• CLASSIFICATION

• COMPLETENESS

• AUTHORIZATION

• ACCURACY

• CUTOFFS