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Flashcards in Audit Testing Deck (10):
1

Confirming opening balance to prior year's auditing ending balance

Allocation and Valuation

2

Examining consignment agreements to ensure client has legal title

Rights and obligations

3

Examine subsequent cash disbursements to determine if those disbursements should have been included in the current period

Completeness (account balances)

4

Re-performing Math computations

Valuation and allocation

5

Review agreements to see if entity complied with any restrictions.

Note: GAAP requires disclosure of non compliance

Completeness (Presentation and Disclosure

6

Auditor's Direct personal observation to corroborating management's assertion

Existence

7

Auditor's Direct personal observation regarding approval of sales orders to prove they really occures

Occurence

8

Tracing from Shipping Documents to sales invoice test all shipments have been properly recorded

Completeness (Transactions and events)

9

Testing aging of accounts receivable

Valuation and Allocation

10

Certain that F/S comply with GAAP requirements of classification of investments as current/noncurrent

Understandability and Classification