Create a test to assess appropriate assertions for designated high-risk business transactions.
Create a test to assess appropriate assertions for designated high-risk business transactions.
Homework Answers
During the audit it is the responsibility of the auditor to give a fair opinion on the financial statements of the company so that the users of the financial information are provided with the actual data. For this the focus of the auditor is on the financial statements and the assertions about assets, liabilities, expenses and revenues. The internal control system is evaluated. Following tests are made to assess the following assertions.
1. Occurrence - Test of the samples of the sales transactions recorded in the sales journal, trace the sales invoices back to the customer orders and shipping documents.
2. Completeness - Tracing a sample of the shipping documents to the details of the sales invoices and to the sales journal and receivable's ledger.
3. Authorization and accuracy - Test conduct to check the authentication of the documents. Check the vouchers of the transactions on sample basis to verify the authority and the accuracy of the document.
4. Classification - Tests of the transactions examine a sample of the accounts that proper classification is made for the revenue or capital nature accounts.
5. Existence - Confirmation of the selected accounts are made to check the existence of the receivables accounts.
Add Answer to:
Create a test to assess appropriate assertions for designated
high-risk business transactions.
Question: Question 29 Assertions about classes of transactions and events typically include _______. -completeness, accuracy, and...
Question: Question 29 Assertions about classes of transactions and events typically include _______. -completeness, accuracy, and valuation -existence, rights, and cutoff -existence, rights, and obligations -occurrence, cutoff, and completeness Question 30 Assertions about account balances at year-end typically include _______. -existence, occurrence, and cutoff -existence, completeness, and allocation -existence, completeness, and rights and obligations -accuracy, valuation, and occurrence Question 31 Assertions about presentation and disclosure typically include _______. -cutoff, presentation, and disclosure -completeness, accuracy and valuation, and classification and understandability...
Describe how organization will assess risks and why this method of risk assessment is appropriate for...
Describe how organization will assess risks and why this method of risk assessment is appropriate for your project. Briefly describe the risk assessment process, define the scale you will use to assess the risks
Create a nursing plan of care for patient with high ammonia level. What would you assess? What are the goals for the pat...
Create a nursing plan of care for patient with high ammonia level. What would you assess? What are the goals for the patient? What nursing interventions are appropriate for this patient? How would you evaluate the effectiveness of your interventions? What patient teaching will you include to prevent increase ammonia level and to prevent its complications?
Create & communicate strategies to minimize risk, create value and manage legal disputes for business leaders...
Create & communicate strategies to minimize risk, create value and manage legal disputes for business leaders in a global environment.
Please create a specific business scenario which is appropriate for hypothesis testing of population mean with...
Please create a specific business scenario which is appropriate for hypothesis testing of population mean with population standard deviation sigma given. Follow all the steps in the textbook (from hypothesis determination to result interpretation at least) to test the hypothesis.
which statistical should I use if I want to perform the appropriate test to assess the...
which statistical should I use if I want to perform the appropriate test to assess the research question: “Is there a difference in degree of pain during maximal activity while on Motrin compared to placebo?” and assume the data are NOT normally distributed and CLT does not apply to the data.
Tests of controls are often performed on routine transactions for which there are high quality automated...
Tests of controls are often performed on routine transactions for which there are high quality automated controls. The very high risk areas in financial statements are often outside this area and relate to non-routine transactions and more intangible environmental or general controls which are not easy to test. Do you still want to do the Test of Control due this issue?
A systemic political risk is: When government interferes with business transactions and constrains flexibility of local...
A systemic political risk is: When government interferes with business transactions and constrains flexibility of local operations When governments change public policies, it creates risks that affect all firms. When governments want to claim larger shares of revenues generated by foreign companies, it gradually eliminates local property rights of foreign companies A risk that devastates the business environment and affects the operations of all firms in a country
Firms tend to use less debt when A. Operating leverage is high O B. Business risk...
Firms tend to use less debt when A. Operating leverage is high O B. Business risk is high C. They have many intangible assets O D. All of the above
—Darren starts a Construction business and completes the following transactions during the month of November. Create...
—Darren starts a Construction business and completes the following transactions during the month of November. Create T-accounts and record transactions. Cash, A/R, Equipment, Pre-paid Rent, Un-earned Revenue, A/P, W/D, Capital, Revenue, Rent & Utilities Exp) —a) Darren invests $40,000 of personal cash in the business —b) He rents a small location and pays the 3 months rent of $3000. —c) He buys $2600 of equipment and pays $1600 cash and $1000 on account —d) He completes a landscaping job for...
Firms tend to use less debt when A. Operating leverage is high O B. Business risk is high C. They have many intangible assets O D. All of the above
Most questions answered within 3 hours.
-
The manager at a car assembly plant believes that the mean
assembly time for a car...
asked 20 minutes ago -
Which of the following is true of electron capture?
A) It decreases the nuclide's mass number...
asked 1 hour ago -
Assuming an efficiency of 43.10%, calculate the actual yield of
magnesium nitrate formed from 114.9 g...
asked 2 hours ago -
The highly pathogenic bacterium Clostridium
perfringens causes gangrene, a disease that results in the
destruction of...
asked 4 hours ago -
In the context of situation analysis, which of the following is
a category for analysis in...
asked 4 hours ago -
In a study of the gas phase decomposition of sulfuryl chloride
at 600 K SO2Cl2(g)SO2(g) +...
asked 4 hours ago -
75 g of 2-propanol (C3H8O) and 25 g of pentane are mixed in a
200 mL...
asked 4 hours ago -
The 2800-turn coil in a dc motor has an area per turn of 1.1 ×
10-2...
asked 4 hours ago -
Draw a combinational logic circuit diagram with a symbol inside
the box for two I/P of...
asked 4 hours ago -
The cliché we use quite a lot in finance is: there is a need to
maximize...
asked 4 hours ago -
In class we discussed the addition of HCl to alpha pinene. Would
you expect one or...
asked 4 hours ago -
I'm trying to explain to my daughter to help her please help
me
I tagged the...
asked 4 hours ago