In: Accounting
For each audit activity, identify the PCAOB assertion that matches with the activity. Each activity has one answer, but the assertions are used more than once.
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Review lease agreements for capital leases. | D. Rights and Obligations |
Select a sample of inventory items from the receiving reports and follow the items to inventory records. | E. Presentation and Disclosure |
Select a sample of fixed asset additions and ask to see the assets. | D. Rights and Obligations |
Review the client's calculation of the allowance for doubtful accounts. | C. Valuation or Allocation |
Compare sales invoice quantities to shipping document quantities to verify the client's assertion that this procedure is done by client personnel. | B. Completeness |
Select a sample of entries in the payroll journal and match the employee name, date of payment, and amount of pay to the employee personnel file. | A. Existence and Occurrence |
Ask production and sales personnel concerning possible obsolete or slow-moving inventory. | B. Completeness |
Watch that an independent person double-checks the payroll wage rates and calculations before check are printed. | C. Valuation or Allocation |
Calculate the percentage of sales for salary and wages expense for this year and the prior year for reasonable presentation. | E. Presentation and Disclosure |
Send a form to the bank for the balances of the payroll checking accounts. | A. Existence and Occurrence |