Module 19 Audit Process: Substantive Testing 1

Question 1

Bank confirmation letter tests what assertions?

Answer 1

• All balance sheet assertions except presentation.

Question 2

Bank reconciliation tests what assertions?

Answer 2

• All balance sheet assertions excpet presentation

Question 3

Cash count tests what assertions

Answer 3

• Existance
• Accuracy, validation and authoristation

Question 4

Foreign currency verification tests what assertion

Answer 4

• AVA

Question 5

Debtors circularisation tests what assertions?

Answer 5

• Existence
• Rights and Obligations
• Classification

Question 6

Test allowancce for doubtful debt is what assertion?

Answer 6

• AVA

Question 7

Subsequent cash testing test for what assertions?

Answer 7

• AVA
• Exsitence
• Rights and Obligations

Question 8

Stock count follow up tests what assertions?

Answer 8

• Completeness
• Existence

Question 9

Cut-off testing stock tests what assertions?

Answer 9

• Completness
• Existence

Question 10

Cost vs. NRV testing tests what assertion?

Answer 10

• AVA

Question 11

Creditors circularisation tests what assetions?

Answer 11

All balance sheet assertions except presentation

Question 12

Supplier statement reconciliations tests what assertions

Answer 12

All balance sheet assertions except presentation

Question 13

Search for unrecorded liabilities tests what assertion?

Answer 13

• Completeness