Question

Now that you have identified the revenue-related internal control that relates to the five assertions (existence, completeness, accuracy or valuation, rights and obligations, and presentation and disclosure), the test of controls will need to be identified for each assertion and internal control. For this assignment, you will write and submit 400-500 words that set specific tests of internal controls for the 5 internal controls related to management assertions that you identified (existence, completeness, accuracy or valuation, rights and obligations, and presentation and disclosure). Please help with this. I am not sure if the instructor is just asking for information about the assertions or if I should actually be coming up with the tests for each assertion.

Answer 1

Answer:

  INTERNAL CONTROLS

In accounting and auditing, inward control is a procedure for accepting of an association's destinations in operational viability and proficiency , solid, money related revealing, and consistence with laws, directions and arrangements. Inward controls includes everything that controls hazard to an association it is mean by in rich an association's assets are coordinated, monetered, and estimated. It assumes a critical part in distinguishing and counteracting and securing the association's assets, both physical and intangible.

Inside control identified with administration assertions includes getting ready of monetary explanations by the administration . The administration makes certain attestations about each line in the monetary articulation reviewers objective is to make sure that there are no material mix-ups in these statements. The five affirmations are existence or accurence, culmination, rights and commitments, valuations, designation, introduction and exposure.

Each line of the money related proclamations contains all declarations, anyway the danger of oversights for every statement will exceptionally as per the record. The examiner is more worried about the higher hazard statements. As a rule, existence is a worry while inspecting resources, fulfillment is a worry while examining liabilities, accurence is a worry while reviewing deals and completeness is a worry while evaluating costs. Every declaration is changed as particular targets.