Procedures To Assertions

Question 0

CutOff

Answer 0

1. Cutoff procedures to analyze transactions before and after year end for proper accounting period recognition.

Question 1

Completeness

Answer 1

1. Tracing of source to F/S.
2. Analytical review related to omissions from the account balance, such as unrecorded liabilities or pledged assets.
3. Observation of processes and procedures.

Question 2

Valuation, allocation, and accuracy

Answer 2

1. Inspection of documentation supporting transactions.
2. Footing and cross footing of schedules.
3. Independent recalculation of aging, depreciation, estimates.
4. Reconciliation of supporting schedules to general ledger line items.

Question 3

Existence and occurrence

Answer 3

1. Confirmation of accounts with third parties.
2. Observation, inspection, and examinations of assets, processes, and procedures.
3. Vouching from F/S to source.

Question 4

Rights and obligations

Answer 4

1. Inspection of documentation supporting transactions, inspection of contracts, etc.

Question 5

Understandability and classification

Answer 5

1. Inspection of documentation supporting transactions.
2. Review of all related disclosures for compliance with GAAP.
3. Inquiry of management regarding disclosures for the account and related accounts.