Understanding the management assertions related to a specic control is an important

factor in preparing the tests of controls. Using the assertions provided below, select the

management assertion(s) that relates to the purpose of the controls in the table. (A

management assertion may be selected once, more than once, or not at all.)

Management Assertions

(a) Existence or occurrence

(b) Completeness

(c) Rights and obligations

(d) Valuation or allocation

(e) Presentation and disclosure

(f) Authorization

(g) Cutoff

Purpose of Control

To ensure that credit is approved before a

sale is executed and service is provided or

goods are shipped

To ensure that transactions shown as sales are

properly classied

To ensure that when cash receipts are recorded

they show cash that was actually received by the

company and deposited

To ensure that cash receipts transactions are

properly posted to the accounts receivable

subsidiary ledger and general ledger

To ensure that all cash received by the company

is deposited and recorded in the cash receipts

journal and that amounts and details, including

the date, are shown correctly

To ensure that sales transactions are recorded based on the correct dates.

Management Assertion