Rev Cycle Flashcards
Valuation and allocation deal with
whether asset, liability, revenue, and expense components have been included in the financial statements at appropriate amounts, and any resulting valuation adjustments are appropriately recorded.
Understandability of presentation and classification deal with
whether financial information is appropriately presented and described, and disclosures are clearly expressed
Tracing bills of lading to sales invoices provides evidence that:
Shipments to customers were invoiced.
racing from the sales journal to bills of lading
provides evidence that recorded sales were shipped.
Record count
addresses the completeness
Limit tests
would test the reasonableness of data and that the individual sales records were not outside of an expected range.
check digits test
used to determine whether all numbers were entered.
Run-to-run totals are completed to ensure
that the total of one processing run, plus the input from the next processing run, should equal the result from the second processing.
Two assertions for which the confirmation of accounts receivable balances provides primary evidence
Rights and obligations and existence.