M6 Audit procedures to test Assertions

Question 1

Auditing procedures testing Completeness

Answer 1

Observation
Tracing transactions
Analytical review

Question 2

Audit procedures testing Cut Off

Answer 2

Cut off procedures

Question 3

Audit procedures to test Valuation, Allocation, and Accuracy

Answer 3

1. Inspection of documentation
2. Footing and cross footing
3. Independent recalculation
4. Reconciliation

Question 4

Audit procedures testing Existence and Occurence

Answer 4

Confirmation of accounts with third parties
Observation, inspection and examination
Vouching

Question 5

Audit procedures testing Rights and obligations

Answer 5

Inspection
Confirmations

Question 6

Audit procedures testing understandability of presentation and classification

Answer 6

Inspection of documentation
Review of disclosures for compliance with GAAP
Inquiry of management regarding disclosures.