In the space provided below, identify the specific financial statement assertion that is most closely related to the situation described for a financial statement audit of a public company (an issuer). Each assertion may be used once, more than once, or not at all.

Here are the options to choose from: Existence / Occurrence, Completeness, Rights / Obligations, Valuation / Allocation, and Presentation / Disclosure

1. In auditing an entitys accounts receivable, the auditor used analytical procedures on the entitys aged trial balance to evaluate the recorded allowance for uncollectibles balance.

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2. Shipments of inventory on consignment (meaning that the risks of ownership were not transferred to the recipient and ownership is retained by the shipping company) were incorrectly recorded as sales at the time of shipment to the consignee.

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3. In auditing the 20X1 calendar-year-end financial statements, the auditor noticed that the entity being audited recorded a sale on January 5, 20X2, but actually shipped the merchandise (FOB-shipping point) on December 28, 20X1.

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4. The auditor discovered material transactions with an entitys related parties which management had not identified to the auditor. Management was opposed to identifying those related parties in the entitys financial statements.

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5. In auditing fixed assets, the auditor selected a sample of fixed asset identification numbers in the subsidiary ledger for the equipment account and agreed those tag numbers to the related pieces of equipment on the factory floor.

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