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The -------------------------- assertion tests whether all items of equipment that should have been recorded have been recorded. Tracing serial numbers on equipment to a nonissuer’s sub-ledger determines whether all existing items of equipment are reflected in the entity’s records.
The completeness assertion tests whether all items of equipment that should have been recorded have been recorded. Tracing serial numbers on equipment to a nonissuer’s sub-ledger determines whether all existing items of equipment are reflected in the entity’s records.
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When an auditor traces the serial numbers on equipment to a nonissuer’s sub-ledger. What assertion is being tested?
Completeness.
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The auditor tests the ------------------ assertion for accounting records by tracing supporting documents to the entries in the records.
The auditor tests the completeness assertion for accounting records by tracing supporting documents to the entries in the records.
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When an auditor traces supporting documents to the entries in the records, what assertion is being tested?
The auditor tests the completeness assertion for accounting records by tracing supporting documents to the entries in the records.
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Tracing subsequent payments to recorded payables is a primary procedure to match payments (checks issued) after year end with the related payables. Checks should be issued only for recorded payables. Any checks that cannot be matched are likely indications of --------------------------------.
Tracing subsequent payments to recorded payables is a primary procedure to match payments (checks issued) after year end with the related payables. Checks should be issued only for recorded payables. Any checks that cannot be matched are likely indications of unrecorded liabilities.
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In confirming with an outside agent, such as a financial institution, that the agent is holding investment securities in the client’s name, an auditor most likely gathers evidence in support of relevant financial statement assertions about existence or occurrence and
Rights and obligations.
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An auditor usually obtains evidence of a company’s equity transactions by reviewing its
Minutes of board of directors’ meetings.
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Equity transactions are typically few and large in amount. They require authorization by the ----------------------------.
Equity transactions are typically few and large in amount. They require authorization by the board of directors.
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Tracing shipping documents and sales invoices to customer account transactions provides evidence that the related sales were recorded at the time of the sale, thereby testing the ------------------- assertion of sales and accounts receivable.
Tracing shipping documents and sales invoices to customer account transactions provides evidence that the related sales were recorded at the time of the sale, thereby testing the completeness assertion of sales and accounts receivable.
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-------------------- ---- Examination of supplier invoices and comparison to recorded amounts provide evidence that inventory was recorded at cost. Examination of the invoices also provides a basis to determine that current (market) prices or net realizable values are not exceeded by the recorded cost of inventory.
Valuation and allocation is the Examination of supplier invoices and comparison to recorded amounts provide evidence that inventory was recorded at cost. Examination of the invoices also provides a basis to determine that current (market) prices or net realizable values are not exceeded by the recorded cost of inventory.
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When an auditor seeks to test the ----------------------------------- assertion of PP&E, (s)he may do so by vouching fixed asset acquisitions to purchase invoices. Vouching PP&E additions to purchase invoices provides evidence that the entity has a valid legal right to the property. This test also provides evidence for the completeness and existence assertions.
When an auditor seeks to test the rights and obligations assertion of PP&E, (s)he may do so by vouching fixed asset acquisitions to purchase invoices. Vouching PP&E additions to purchase invoices provides evidence that the entity has a valid legal right to the property. This test also provides evidence for the completeness and existence assertions.
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When an auditor seeks to test the rights and obligations assertion of PP&E, (s)he may do so by vouching fixed asset acquisitions to purchase invoices. Vouching PP&E additions to purchase invoices provides evidence that the entity has a valid legal right to the property. This test also provides evidence for the ----------------- and ------------------------ assertions.
When an auditor seeks to test the rights and obligations assertion of PP&E, (s)he may do so by vouching fixed asset acquisitions to purchase invoices. Vouching PP&E additions to purchase invoices provides evidence that the entity has a valid legal right to the property. This test also provides evidence for the completeness and existence assertions.
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Tracing payments issued after year end to the related payables is a primary test of the ---------------------------- assertion regarding accounts payable. Checks should only be issued for recorded payables, thus any unmatched check may indicate an unrecorded liability.
Tracing payments issued after year end to the related payables is a primary test of the completeness assertion regarding accounts payable. Checks should only be issued for recorded payables, thus any unmatched check may indicate an unrecorded liability.
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Because the inherent risk for cash is high, most audit procedures relative to cash are directed toward the existence assertion. By agreeing the cash balance listed on the bank reconciliation to the year-end bank statement, the auditor is gathering evidence of the ---------------------------- of cash.
Because the inherent risk for cash is high, most audit procedures relative to cash are directed toward the existence assertion. By agreeing the cash balance listed on the bank reconciliation to the year-end bank statement, the auditor is gathering evidence of the existence of cash.
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