Audit Assertion

16b. (4)

16c. (4)

17a. (3)

17b. (3)

17c. (3)

19.

1. A. Occurrence

B. Discuss and observe activities performed by personnel from purchasing, receiving shipping and payables and disbursing functions.

   C. Goods are received but not recorded due to stealing from employees.

   D. Review and physically count the inventories.

1. A. Completeness

B. Accounts for a numerical sequence of checks for receiving reports.

C. Receiving reports are misplaced thus the reports are not prenumbered properly.

D. Reconcile vendors’ statement with the receiving reports.

1. A. Timing and completeness

B. Check and compare the dates on vendors’ invoices and accounting records.

C. Vendors’ invoices might be recorded late or not recorded.

D. Looking for unrecorded vendors’ invoices.

1. A. Classification

B. Examine indication of approval.

C. The invoice accounts are recorded in wrong accounts.

D. Examine supporting invoices for proper accounts’ distribution.

1. A. Accuracy

B. Examine indication of invoices for checking amounts’ accuracy.

C. Amounts on vendors’ invoices are improperly recorded.

D. Test extensions, footings, discounts and freight terms on vendors’ invoices.

1. A. Completeness and timing

B. Observes whether the system automatically posts checks as they are prepared.

C. Checks are recorded in the wrong period.

D. Compare date on checks with date of bank recorded.

1. A. Occurrence

B. Examine invoices for which checks have been disbursed to determine that they have been cancelled.

C. Invoices are mistakenly paid more than once.

D. Track checks to find whether related supporting material exists.

1. A. Occurrence

B. Inquire and observe activities performed by personnel from payable, disbursing, cash and general ledger functions.