Assertions

Question 1

Occurrence

Answer 1

Transactions and events that have been recorded have actually occurred and pertain to the entity.

Select a sample of sales transaction recorded in the sales day book; agree the details back to a GDN

Question 2

Completeness

Answer 2

All transactions and events that should have been recorded have been recorded.

select sample of GDN raised during the year; agree to sales invoice that they are recorded in the sales day book.

Question 3

Accuracy

Answer 3

The amounts and other data relating to recorded transactions and events have been recorded appropriately.

select sample of sales invoices and recalculate the totals and calculations of sales tax are correct.

Question 4

Classification

Answer 4

Transactions and events have been recorded in the proper accounts.

agree sample of sales invoices that they have been correctly recorded within revenue nominal account codes and included within revenue in financial statements.