chapter 4 - evidence Flashcards
1
Q
What assertions are used for SPL
A
- Accurence - transactions must occur in the correct peroid
- completeness
- accuracy
- cut off - recorded in th corec period
- Classification - recorfed in proper accounts
- Presentation
2
Q
What assertions are used for SFP
A
- Existence
- Rights & obligations - they own what is stated
- Completeness
- Acccuracy & valuation
- CLassification - recorded in the proper accounts
- Presentation
3
Q
What does subjective testing involve?
A
- testing the numbers of a statment
- analytical procedures
- must always be carrid out on material items
4
Q
Whats must be included in an audit opinion?
A
- true & fair
- Properly prepeared in acccourdance with criteria
- information in directors report is consistent with FS
5
Q
What is the purpose and the formula to calculate the following…
- return on capital employed
- return on shareholders fund
- Gross profit margins
- Coast of sales percenatges
- Operating cost percentages
- Net margin / operating margin
A
6
Q
What is the purpose and the formula to calculate the following?
- Current ratio
- Quick ratio
- Gearing ratio
- Interest cover
- Net asset turnover
- Trade recievables collection period
- Trade payables payment period
- Inventory holding period
A
