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In: Accounting

What Is the Management Assertion That an Auditor Is Testing If He or She: Tests That...

  • What Is the Management Assertion That an Auditor Is Testing If He or She:
    • Tests That Accounts Receivable Are Not Overstated by The Inclusion of Fictitious Customer Accounts or Amounts
    • Tests the Adequacy of The Allowance for Uncollectible Accounts
    • Compared the Prices and Terms on A Sample of Sales Invoices with An Authorized Price List and Terms of Sales
    • Traced A Sample of Shipping Documents to The Details of The Sales Invoices and To the Sales Journal and To the Customer’s Accounts Receivable Subsidiary Ledger.
    • Tested A Sample of Shipping Documents Just Prior To The End of The Year. Then the Auditor Tested A Sample of Shipping Documents Just After the End of The Year.
    • Tracing Copies of Sales Invoices to Shipping Documents
    • The Auditor Recomputed Financial Information on A Sample of Sales Invoices.
    • Tests Designed to Detect Credit Sales Made After the End of The Year That Have Been Recorded in The Current Year
    • Reviewing Credit Ratings of Customers with Delinquent Accounts Receivable

(The assertions can be; Occurrence, Completeness, Authorization, Accuracy, Cutoff, Classification, & Presentation.)

Solutions

Expert Solution

S no Assertion
1 Tests That Accounts Receivable Are Not Overstated by The Inclusion of Fictitious Customer Accounts or Amounts Occurrence
2 Tests the Adequacy of The Allowance for Uncollectible Accounts Completeness
3 Compared the Prices and Terms on A Sample of Sales Invoices with An Authorized Price List and Terms of Sales Accuracy
4 Traced A Sample of Shipping Documents to The Details of The Sales Invoices and To the Sales Journal and To the Customer’s Accounts Receivable Subsidiary Ledger. Occurrence, timing, classification
5
Tested A Sample of Shipping Documents Just Prior To The End of The Year. Then the Auditor Tested A Sample of Shipping Documents Just After the End of The Year.
Cut off
6 Tracing Copies of Sales Invoices to Shipping Documents Occurrence, accuracy
7 The Auditor Recomputed Financial Information on A Sample of Sales Invoices. Accuracy
8 Tests Designed to Detect Credit Sales Made After the End of The Year That Have Been Recorded in The Current Year Cut off, classification
9 Reviewing Credit Ratings of Customers with Delinquent Accounts Receivable Classification

ekkarill92 answered 1 year ago
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