Assertion Evidence for Accounts Payable and Accrued Expenses Flashcards Preview

Auditing and Attestation > Assertion Evidence for Accounts Payable and Accrued Expenses > Flashcards

Flashcards in Assertion Evidence for Accounts Payable and Accrued Expenses Deck (14)
Loading flashcards...
1

Assertions about Classes of Transactions - Occurrence

Test a sample of vouchers for the presence of an authorized purchase order and receiving report.

2

Assertions about Classes of Transactions - Completeness

Trace a sample of vouchers to the purchases journal.

3

Assertions about Classes of Transactions - Authorization

Test a sample of purchase requisitions for proper authorization

4

Assertions about Classes of Transactions - Accuracy

Recompute the mathematical accuracy of a sample of vendors' invoices

5

Assertions about Classes of Transactions - Cutoff

Compare dates on a sample of vouchers with the dates transactions were recorded in the purchases journal. Test transactions around year-end to determine if they are recorded in the proper period.

6

Assertions about Classes of Transactions - Classification

Verify classification of charges for a sample of purchases transactions.

7

Assertions about Account Balances - Existence

Vouch selected amounts from the accounts payable listing and schedules for accruals to voucher packers or other supporting documentation. Obtain selected vendors' statements and reconcile to vendor accounts. Confirmation of accounts payable.

8

Assertions about Account Balances - Rights and obligations

Review voucher packets for presence of purchase requisition, purchase order, receiving report, and vendor invoice.

9

Assertions about Account Balances - Completeness

Obtain listing of accounts payable and agree total to general ledger. Search for unrecorded liabilities by inquiring of management and examining post-balance sheet transactions. Obtain selected vendors' statements and reconcile to vendor accounts. Confirmation of selected accounts payable.

10

Assertions about Account Balances - Valuation and allocation

Obtain listing of accounts payable and account analysis schedules for accruals; foot listing and schedules and agree totals to general ledger. Trace selected items from the accounts payable listing to the subsidiary records and voucher packets. Review results of confirmations of selected accounts payable. Obtain selected vendors' statements and reconcile to vendor accounts.

11

Assertions about Presentation and Disclosure - Occurrence and rights and obligations

Inquire about accounts payable and accrued expenses to ensure that they are properly disclosed.

12

Assertions about Presentation and Disclosure - Completeness

Complete financial reporting checklist to ensure that all financial statement disclosures related to accounts payable and accrued expenses have been disclosed.

13

Assertions about Presentation and Disclosure - Classification and understandability

Review listing of accounts payable for material debits, long-term payables, and non trade payables. Determine whether such items require separate disclosure on the balance sheet. Read footnotes to ensure that required disclosures are understandable.

14

Assertions about Presentation and Disclosure - Accuracy and valuation

Read footnotes and other information to ensure that the information is accurate and properly presented at the appropriate amounts.