Module 16 and some 17 Flashcards
What are the two instances that the directional method would be reversed?
Credit notes
Fixed asset disposals
What are the assertions for bank reconciliation and bank confirmation letter?
CRACE
What are the assertions for debtor circularisation?
R+O
E
Cl
What are the assertions for subsequent cash testing?
AVA
E
What is assertion for testing bad debt provision?
AVA
What are assertions for cut off testing and stock count follow up?
C
E
What is assertion for cost vs NRV testing and testing stock provision?
AVA
What are assertions for creditors circularisation and supplier statement reconciliations?
CRACE
What is assertion for unrecorded liabilities?
C
Cut off testing scenarios for purchases?
Before year end - GRN Included in:
Purchases
Creditors
Stock
After year end - GRN included in:
Not purchases
Not creditors
Not stock
Cut off testing meets what assertions?
P+L: cut off
B/S: completeness and existence
Cut off testing scenarios for sales?
Before year end GDN included in:
Sales
Debtors
Not stock (goods have been shipped so would expect to see GDN)
After year end GDN included in
Not sales
Not debtors
Stock (haven’t been shipped)
What are the three key substantive procedures performed on creditors?
Creditors circulations
Supplier standby reconciliations
Search for unrecorded liabilities
Analytical procedures for balance sheet assertions?
CACE
Not rights and obligation
Assertions for payroll reconciliation?
OCCCA
