introduction to auditing individual areas

Question 1

audit procedures applicable to the four assertions of account balances

Existence

Answer 1

existence-related to validity of recorded items
confirmation
observation
agree or vouch to underlying documents

Question 2

audit procedures applicable to the four assertions of account balances

completeness

Answer 2

completeness-related to ommission of amounts that should have been recorded
cutoff tests
analytical procedures

Question 3

audit procedures applicable to the four assertions of account balances

rights and obligations

Answer 3

rights and obligations-related to any restrictions to the entity rights to their assets or to their obligations for their liabilities
inquire of all applicable client personnel
examine authorization of transactions

Question 4

audit procedures applicable to the four assertions of account balances

valuation and allocation

Answer 4

valuation and allocation-related to the appropriateness of dollar measurements
recalculate account balances
trace to subsequent cash receipts and disbursements
analytical procedures
examine published price publications for fair value measurements