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Flashcards in Financial Statement Assertions Deck (12)
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1
Q

Examing consignment agreement

A

Rights and obligations

2
Q

Examing check register for the month following year-end for disbursements relating to the current period

A

Completeness (account balances)

3
Q

Review bond indentures agreement and ascertain that the client has complied with any restrictive covenants

A

Completeness (presentation and disclosure)

4
Q

Inspect major new additions to PPE

A

Existence

5
Q

Test of aging AR

A

Allocation and evaluation

6
Q

Observe Procedures, including segregation of duties for approving SO

A

Occurrence

7
Q

Trace shipping documents to sales invoice

A

Completeness (transactions and events)

8
Q

Reperform check accuracy of vendor invoice pricing

A

Evaluation and allocation

9
Q

Trace beginning balance for inventory to prior year’s audit documents

A

Allocation and valuation

10
Q

Using a combined approach most likely would involve

A

Identifying specific internal controls relevant to specific assertions.

11
Q

In assessing the competence of internal auditor an independent auditor would least likely to obtain info from

A

the results of analytical procedures

12
Q

Which procedure auditor least likely to perform when he uses specialist

A

Refer to the auditor’s specialist in the audit report to indicate a division of responsibility