State the assertion (existence, occurrence, rights & ownership, completeness, valuation/accuracy, presentation, classification, cut-off) that is relevant for the following: a) The client books expenses relating to this year in next year's books. b) The auditor ensures that inventory is recorded at the lower or cost and net realizable value. c) There are no undisclosed contingencies d) The client records its salary expense in the depreciation expense account. e) An auditor examines the deed/title to the building recorded on the balance sheet. f) The client accidently records its telephone bill twice for the month of November.

State the assertion (existence, occurrence, rights & ownership, completeness, valuation/accuracy, presentation, classification, cut-off) that is relevant for the following: a) The client books expenses relating to this year in next year's books. b) The auditor ensures that inventory is recorded at the lower or cost and net realizable value. c) There are no undisclosed contingencies d) The client records its salary expense in the depreciation expense account. e) An auditor examines the deed/title to the building recorded on the balance sheet. f) The client accidently records its telephone bill twice for the month of November.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.

Question

State the assertion (existence, occurrence, rights & ownership, completeness, valuation/accuracy,
presentation, classification, cut-off) that is relevant for the following:
a) The client books expenses relating to this
year in next year's books.
b) The auditor ensures that inventory is
recorded at the lower or cost and net
realizable value.
c) There are no undisclosed contingencies
d) The client records its salary expense in the
depreciation expense account.
e) An auditor examines the deed/title to the
building recorded on the balance sheet.
f) The client accidently records its telephone
bill twice for the month of November.

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