Provide the applicable assertion that applies to the statement with the applicable assertion. An assertion can used more than once or not at all. Each statement only has 1 assertion that applies. (10 marks)

Assertion List

Accuracy

Classification

Completeness

Cut-off

Existence

Occurrence

Rights and obligations

Valuation

• Sales increased substantially during the year compared to the prior year.
• The company has not recorded any balance for allowance for doubtful accounts
• The company made a large amount of sales right before year-end.
• During the inventory count, the auditor found a box of televisions in the warehouse that did not appear on the inventory listing.
• The companys gross profit increased by 25% during the year, but administrative expenses also increased by 25% during the year. Gross profit is a key metric for managements bonus.
• The companys payroll has increased by 25% compared to the prior year.
• The auditor is concerned that there might be damaged equipment.
• The bank uses the companys accounts receivable as collateral for their operating loan.
• The companys cash balance has increased substantially compared to prior year.