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AA Question Rote > Assertions Summary of FS Class > Flashcards

Assertions Summary of FS Class Flashcards

1
Q

Completeness (NCA)

A

Obtain schedule
Agree to records

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2
Q

Existence (NCA)

A

Inspect assets

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3
Q

Valuation (NCA)

A

Validate valuer, insurance policies
Reperform calculations

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4
Q

Valuation-depreciation (NCA)

A

Review depreciation rules
Compare ratios of depreciation
Reperform calculations

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5
Q

Rights and obligations (NCA)

A

Obtain documents (e.g. registration documents, certificate from solicitors, leases)

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6
Q

Classification (NCA)

A

Review IAS 16

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7
Q

Additions (NCA)

A

Review capitalisation of expenditure
Scrutinise NCA ledger and general ledger
Inspect non-current asset accounts

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8
Q

Disposals (NCA)

A

Recalculate disposal
Verify documentation
Reasonableness of proceeds

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9
Q

Completeness (inventory)

A

Trace test counts
Compare gross profit percentage
Third-party locations then physically inspect

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10
Q

Existence (inventory)

A

Observe physical inventory count

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11
Q

Rights and obligations (inventory)

A

What’s included in the financial statements

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12
Q

Cut-off (inventory)

A

GDNs and GRNs

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13
Q

Classification (inventory)

A

Distinguish between raw materials, work-in-progress and finished goods

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14
Q

Completeness (Receivables)

A

Aged receivables listing and recast total
Obtain breakdown of trade receivables figure
Sample of GDNs to relevant sales invoice

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15
Q

Existence (Receivables)

A

Inspect customer correspondence
Review monies
Sample of balances

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16
Q

Accuracy and valuation (Receivables)

A

Compare receivables collection period

Examine credit notes

Agree monies received post year end from receivables - balance is recoverable

17
Q

Rights and obligations (Receivables)

A

Review monies received post year end from receivables - balance is due to audit client

Vouch outstanding balance back to sales invoices and GDNs

Inspect responses from direct confirmation

18
Q

Completeness (Revenue)

A

Obtain breakdown of revenue
Compare gross product percentage

19
Q

Occurence (Revenue)

A

Vouch sales invoices back to documentation

20
Q

Accuracy (Revenue)

A

Compare prices to authorised price list
Test discounts have been applied

21
Q

Completeness and existence (Bank)

A

Obtain documentation and explanations
Trace cheques
Compare cash books and bank statements and match items

22
Q

Valuation (Bank)

A

Reperform calculations
Lodgments
Contra items
Verify bank balances

23
Q

Rights and obligations (Bank)

A

Determine whether bank accounts are subject to any restrictions within management

24
Q

Classifications (Bank)

A

Consider legal right of set-off as overdrafts against positive bank balances

Ensure disclosures for bank are complete

25
Q

Completeness and existence (Payables and accruals)

A

Compare to previous years

26
Q

Rights and obligations (Payables and accruals)

A

Vouch selected amounts to documentation

27
Q

Valuation (Payables and accruals)

A

Recalculation

28
Q

Classification (Payables and accruals)

A

Review

29
Q

Existence (non-current liabilities)

A

Obtain direct confirmation from banks

30
Q

Rights and obligations (non-current liabilities)

A

Review direct confirmation letters

31
Q

Completeness (non-current liabilities)

A

Obtain breakdown of liabilities, compare to prior years
Review board minutes and cash book

32
Q

Accuracy and valuation (non-current liabilities)

A

Calculation

33
Q

Classification (non-current liabilities)

A

Does it match to accounting standards

34
Q

Existence (directors’ emoluments)

A

Agree director’s enoluments in FS to schedule of emoluments

One-off payments

35
Q

Rights and obligations (directors’ emoluments)

A

Verify emoluments

36
Q

Completeness (directors’ emoluments)

A

Review board meetings

Review cash book during the year

Confirm with directors

37
Q

Accuracy and valuation (directors’ emoluments)

A

Recalculate

38
Q

Classification and presentation (directors’ emoluments)

A

Obtain 3rd party documentation (copy of returns from tax authorities, local law)

AA Question Rote (29 decks)

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