Assertions for Payroll Expenses and Payroll-Related Accruals

Question 1

Assertions about Classes of Transactions and Events - Occurrence

Answer 1

Payroll transactions and events are valid.

Question 2

Assertions about Classes of Transactions and Events - Completeness

Answer 2

All payroll transactions and events have been recorded.

Question 3

Assertions about Classes of Transactions and Events - Authorization

Answer 3

All payroll transactions and events are properly authorized.

Question 4

Assertions about Classes of Transactions and Events - Accuracy

Answer 4

Payroll transactions have been properly computed and recorded.

Question 5

Assertions about Classes of Transactions and Events - Cutoff

Answer 5

Payroll expense and related accruals are recorded in the correct accounting period.

Question 6

Assertions about Classes of Transactions and Events - Classification

Answer 6

Payroll expenses and related accruals have been recorded in the proper accounts.

Question 7

Assertions about Account Balances at Period End - Existence

Answer 7

Payroll expense is a valid expense and related accruals are valid liabilities

Question 8

Assertions about Account Balances at Period End - Rights and obligations

Answer 8

The payroll-related accruals are the obligations of the entity

Question 9

Assertions about Account Balances at Period End - Completeness

Answer 9

All payroll expense and related accruals have been recorded

Question 10

Assertions about Account Balances at Period End - Valuation and allocation

Answer 10

Payroll expense and related accruals are included in the financial statements at appropriate amounts, and any resulting valuation or allocation adjustments are appropriately recorded

Question 11

Assertions about Presentation and Disclosure - Occurrence and rights and obligations

Answer 11

All disclosed events, transactions, and other matters relating to payroll expense and related accruals have occurred and pertain to the entity

Question 12

Assertions about Presentation and Disclosure - Completeness

Answer 12

All disclosures relating to payroll expense and related accruals that should have been included in the financial statements have been included

Question 13

Assertions about Presentation and Disclosure - Classification and understandability

Answer 13

Financial information relating to payroll expense and related accruals is appropriately presented and described, and disclosures are clearly expressed

Question 14

Assertions about Presentation and Disclosure - Accuracy and valuation

Answer 14

Financial and other information relating to payroll expense and related accruals are disclosed fairly and in appropriate amounts