Grace Mature was conducting a training class for new audit staff assistants. She was trying to emphasize the need for them to think about proper auditing procedures rather than merely relying on the audit program and following it in a rote manner.

Ms. Mature used this model to explain how new staff assistants could arrive at appropriate audit procedures.

Ms. Mature then asked each member of the group to design an auditor's specific objectives for a different account. Will Start was asked to design specific objectives for cash, Myrna New was asked to design specific objectives for net accounts receivable, and Hyman Begin was asked to design specific objectives for property and equipment. Each person had to include objectives that took into consideration at least three of the five general management assertions.
Required:
Using the model illustrated by Ms. Mature and described in the chapter, perform the assignment for each of the three new audit assistants.

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Auditor's overall objective Auditor's general objectives for each account Auditor's specific objectives for each account (using certain specific objectives for inventory as an example) To express an opinion on the fairness with which the financial statements present financial position, results of operations, and cash flows in conformity with generally accepted accounting principles. To determine whether management's assertions (existence or occurrence, rights and obligations, completeness, valuation or allocation, presentation or disclosure) concerning the account are valid. To determine whether the inventory amount on the balance sheet is represented by all physical items on hand, in transit, or on consignment (existence and completeness).