Audit Procedures Flashcards
What should auditors consider when designing substantive procedures?
Auditors should consider which financial statement assertions the test needs to address.
What does the assertion of Occurrence mean for transactions and events?
Transactions recorded have occurred and pertain to the entity.
What does the assertion of Completeness mean for transactions and events?
All transactions that should have been recorded are included in the records.
What is the Accuracy assertion for transactions and events?
Recorded amounts are appropriate and accurate.
What is the Cut-off assertion for transactions and events?
Transactions are recorded in the correct accounting period.
What does the Existence assertion mean for account balances at the period end?
Assets, liabilities, and equity interests exist.
What does the Rights and Obligations assertion mean?
The entity owns its assets, and the liabilities are obligations of the entity.
What does the Completeness assertion mean for account balances?
All assets, liabilities, and equity interests that should be recorded are included.
What is the Accuracy, Valuation, and Allocation assertion for account balances?
Assets, liabilities, and equity interests are reported at appropriate amounts in the financial statements.
