The eight general audit procedures produce evidence about the principal management assertions in financial statements. However, some procedures are useful for producing evidence about certain assertions, and other procedures are useful for producing evidence about other assertions. The assertion being audited can influence the auditors choice of procedures.
Required:
Opposite each general audit procedure, write the management assertions best tested by using each procedure.
Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.
Inspection of tanglble assets PCAOB Assertions Existence ? Occurrence Rights and obligations x x Completeness Valuation and allocation ? Presentation and disclosure ? Valuation * ? Rights ? All assertions ASB Assertions Existence ? Occurrence Completeness Valuation and allocation Rights and obligations 2 Accuracy ? Classification ? All assertions ? Valuation ? Rights J. Analytical procedures PCAOB Assertions 2 Existence x Occurrence ? Rights and obligations ? Completeness (? Valuation and allocation ? Presentation and disclosure ? Valuation ? Rights ? All assertions ASB Assertions a. Inspection of records or documents (vouching) PCAOB Assertions Existence Occurrence Rights and obligations Completeness Valuation and allocation Presentation and disclosure ? Valuation ? Rights ? All assertions * ASB Assertions Existence Occurrence Completeness Valuation and allocation Rights and obligations Accuracy Classification ? All assertions ? Valuation * ? Rights x f. Confirmation PCAOB Assertions 2 Existence ? Occurrence ? Rights and obligations ? Completeness ? Valuation and allocation 3 Presentation and disclosure ? Valuation ? Rights ? All assertions ASB Assertions I. Reperformance PCAOB Assertions ? Existence ? Occurrence 2 Rights and obligations ? Completeness 3 Valuation and allocation (2) Presentation and disclosure ? Valuation x ? Rights ? All assertions x ASB Assertions (3) Existence ? Occurrence (2) Completeness 2 Valuation and allocation ? Rights and obligations ? Accuracy ? Classification ? All assertions ? Valuation (2) Rights e. Observation PCAOB Assertions 2 Existence ? Occurrence ? Rights and obligations ? Completeness ? Valuation and allocation ? Presentation and disclosure ? Valuation ? Rights ? All assertions ASB Assertions ? Existence x ? Occurrence ? Completeness ? Valuation and allocation ? Rights and obligations 2 Accuracy ? Classification x ? All assertions ? valuation x ? Rights h. Recalculation PCAOB Assertions (?) Existence (3) occurrence ? Rights and obligations ? Completeness ? Valuation and allocation ? Presentation and disclosure ? Valuation ? Rights ? All assertions ASB Assertions ? Existence x ? Occurrence ? Completeness ? Valuation and allocation ? Rights and obligations ? Accuracy ? Classification ? All assertions ? Valuation ? Rights b. Inspection of records or documents (tracing) PCAOB Assertions Existence Occurrence Rights and obligations Completeness Valuation and allocation Presentation and disclosure ? Valuation x ? Rights ? All assertions ASB Assertions Existence Occurrence Completeness Valuation and allocation Rights and obligations Accuracy Classification ? All assertions ? Valuation ? Rights c. Inspection of records or documents (scanning) PCAOB Assertions Existence Occurrence Rights and obligations Completeness Valuation and allocation Presentation and disclosure ? Valuation ? Rights ? All assertions ASB Assertions Existence Occurrence Completeness Valuation and allocation Rights and obligations Accuracy Classification ? All assertions ? Valuation x ? x Rights
