Management Assertions (COVERUP) Flashcards
1
Q
COMPLETENESS
A
- all account balances, transactions, and disclosures have been recorded and included in the FS
- account balances = failure to record a loan
2
Q
VALUATION, ALLOCATION, AND ACCURACY
A
- measured at the appropriate amount
- land = historical cost (investment)
- old inventory - items are obsolete and worthless
- management did not review the collectibility
3
Q
EXISTENCE AND OCCURRENCE
A
- account balance exists
- transactions have been recorded and disclosed
- obtain an aging accounts receivable and trace transaction to the source documentation
- asset disposal during the year
4
Q
RIGHTS AND OBLIGATION
A
- rights to assets and liabilities
5
Q
UNDERSTANDABILITY AND CLASSIFICATION
A
- account recorded in the correct section at the correct time
6
Q
Transaction
A
missing rights and obligations
7
Q
Account Balances
A
missing cutoff
