Assertions and Audit evidence Essay Example for Free

Assertions and Audit evidence Essay1. The allowance for doubtful accounts is plumb presented in amount. * Valuation or allocation impudence2. All accounts payable owed as of the balance public opinion poll date are include in the financial rehearsals. * Existence or occurrence assertion3. All purchase returns recorded in the general ledger are valid. * Existence or occurrence assertion4. The allowance for doubtful accounts is fairly presented in amount. * Valuation or allocation assertion5. All accounts payable owed as of the balance sheet date are included in the financial statements. * Completeness assertion6. All purchase returns recorded in the general ledger are valid. * Existence or occurrence assertion7. A retail node values its inventory utilize the retail method of accounting. * Valuation or allocation assertion8. A construction client uses the percentage of completion method for recognizing revenues. * Existence or occurrence assertion9. A client has a defined be nefit pension plan and does not come competent employees to redeem footnote disclosures. * Presentation and disclosure assertion classifications and understandability10. Slow-moving items included in inventory have been properly identified and priced. * Valuation or allocation assertion11. A client financed the acquisition of assets using preferred stock that pays a 3 percent dividend and must be redeemed from the shareholders next year. * Rights and obligations assertion1. Bank statement sent directly to the auditor by the bank. (1) Most authentic2. Creditor monthly statement obtained from clients files. (2) Reliable, but subject to possible forgery3. Vouchers in clients unpaid voucher file. (4) least reliable4. likeness sales invoices in filled order file. (4) Least reliable 5. Time tickets filed in payroll department. (4) Least reliable6. Credit memo in customers file. (4) Least reliable7. Material requisitions filed in storeroom. (4) Least reliable8. Bank statement in cli ents files. (2) Generally reliable9. Management working papers in reservation accounting estimates. (4) Least reliable10. Paid checks returned with bank statement in (1) above. (3) Somewhat reliable11. earn in customer file from collection agency on collectability of balance. (2) Generally reliable12. Memo in customer file from treasurer authorizing the write-off of the account. (4) Least reliable