What controls might an auditor test related to the valuation assertion for the sales account?

Expert Solution

Assertion for the sales account
1. Occurrence
2. Completeness
3. Accuracy
4. Cut off
5. Classification
6. Presentation

(i) Occurrence – the transactions of sale and events that have been recorded or disclosed, have occurred, and such transactions and events pertain to the entity.

(ii) Completeness – all transactions of sale and events that should have been recorded have been recorded and all related disclosures that should have been included in the financial statements have been included.

(iii) Accuracy – amounts and other data relating to recorded transactions and events have been recorded appropriately, and related disclosures have been appropriately measured and described.

(iv) Cut–off – transactions and events have been recorded in the correct accounting period.

(v) Classification – transactions and events have been recorded in the proper accounts.

(vi) Presentation – transactions and events are appropriately aggregated or disaggregated and clearly described, and related disclosures are relevant and understandable in the context of the requirements of the applicable financial reporting framework.

ekkarill92 answered 1 year ago

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