A4 - Audit Procedures by Transaction Class Flashcards
An analysis of which account would best aid in verifying that all fixed assets have been capitalized?
Repairs and maintenance
The auditor’s inventory observation test counts are traced to the client’s inventory listing to test for which financial statement assertion?
Completeness
Which assertions are tested under the balances substantive procedure?
CVER Completeness Valuation, allocation and accuracy Existence and occurrence Rights and obligations
Which assertions are tested under the transactions substantive procedure?
COVEU Completeness CutOff Valuation, allocation and accuracy Existence and occurrence Understandability and classification
Which assertions are tested under the disclosures substantive procedure?
CVRU Completeness Valuation, allocation and accuracy Rights and obligations and occurrence Understandability and classification
T/F: The auditor should observe the physical inventory count of goods held in public warehouses if the inventory held therein is significant; otherwise, confirmation of such inventory is sufficient
True
T/F: Whoever signs the checks should not mail the checks
False; signing and mailing prevents defalcation of checks
What are the three concepts of proper segregation of duties?
ARC
Authorization
Recording
Custody