Matching Auditing Procedures to Specific Assertions

Question 1

completeness

Answer 1

tracing of transactions forward, starting from source documents ending with financial statements

Question 2

completeness

Answer 2

analytical review procedures

Question 3

completeness

Answer 3

observation of processes & procedures

Question 4

cutoff

Answer 4

cutoff procedures to analyze transactions before & after year-end for proper period recognition

Question 5

valuation, allocation, & accuracy

Answer 5

inspection of documentation supporting transactions

Question 6

valuation, allocation, & accuracy

Answer 6

footing (sum down) & cross-footing (sum across) of schedules

Question 7

valuation, allocation, & accuracy

Answer 7

independent recalculation

Question 8

valuation, allocation, & accuracy

Answer 8

reconciliation of supporting schedules to general ledger line items

Question 9

existence & occurrence

Answer 9

confirmation of accounts with third parties

Question 10

existence & occurrence

Answer 10

observation, inspection, & examination of assets, processes, & procedures

Question 11

existence & occurrence

Answer 11

vouching of transactions from financial statements back to supporting documents

Question 12

rights & obligations

Answer 12

inspection of documentation supporting transactions, inspection of contracts, etc.

Question 13

rights & obligations

Answer 13

confirmations

Question 14

understandability of presentation & classification

Answer 14

inspection of documents supporting transactions

Question 15

understandability of presentation & classification

Answer 15

review of all related disclosures for compliance with GAAP

Question 16

understandability of presentation & classification

Answer 16

inquiry of management regarding disclosures for the account & for related accounts