Assertions

Question 1

CAP

Answer 1

Classes of transactions-For the entire period under audit
Account balances- At period end
Presentation and disclosure- understandable, comprehend information

Question 2

Classes of transactions

Answer 2

Occurrence - record transactions and events occurred and pertain to the entity.
Completeness - all transactions and events have been recorded.
Accuracy - stated at the right amounts.
Cut off - transactions and events recorded in the correct period.
Classification - transactions and events are they recorded in the proper accounts.

Question 3

Account balances

Answer 3

Existence - assets, liabilities, equity exist
Rights and obligations - do they own the assets,
Completeness- all assets, liabilities have been recorded
Valuation and allocation - assets, liabilities and equity interest are included at appropriate amounts.

Question 4

Presentation and disclosure

Answer 4

Occurrence/Rights and obligations - disclosed events and transactions have occurred and pertain to the entity
Completeness - all disclosures have been included
Classified and understandable- financial information is appropriately presented and described.
Accuracy and valuation - financial and other information are disclosed fairly and at appropriate amounts.

Question 5

Completeness

Answer 5

Trace, prenumbered, unrecorded, understatements, cut off

Question 6

Existence and occurrence

Answer 6

vouch, valid, observation, confirmation, overstatements

Question 7

Valuation - accuracy

Answer 7

recalculating, recomputing, price test, properly valued, fair value, contra account (contra account is the biggest one they test on the exam) Any accounts receivable questions, bad debt, credit, etc have to deal with valuation no matter what.