Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Audit Evidence –
Cycle Approach and
Audit Objectives
2 Management Assertions
Financial Statements
Unaudited
Capital acquisition
and repayment cycle
Inventory and
warehousing
cycle
Sales returns
$ 1,242 and allowances
Charge-off of
$ 3,323 uncollectible
accounts
Phase Reporting
Draw conclusions about
3 the fairness of the transactions and
account balances in the cycles
Category of Assertions :
1. Assertions about classes of transactions and events
for the period under audit
2. Assertions about account balances at period end
3. Assertions about presentation and disclosure
Low
Transaction-Related
Assertions Description
Audit Objectives
Occurrence Occurrence Recorded transactions exist
Existing transactions are
Completeness Completeness
recorded
Accuracy Recorded transactions are
stated at the correct amounts
Accuracy Posting & Recorded transactions are
Summarization properly included in the master
file & are correctly summarized
Transactions are properly
Classification Classification
classified
Transactions are recorded on
Cutoff Timing
the correct dates
Balance-Related
Assertions Description
Audit Objectives
Existence Existence Amounts included exist
Completeness Completeness Existing amounts are included
The entity holds or controls the
Rights & Rights &
rights to assets and liabilities are
obligations obligations
the obligation of the entity
Valuation & ………..
allocation
(cont’d)
Balance-Related
Assertions Description
Audit Objectives
Valuation & Accuracy Amounts included are stated at the
allocation correct amounts
Classification Amounts included are properly
classified
Cutoff Transactions are recorded in the
correct period
Detail tie-in Details in the account balances
agree with related subledger & with
the general ledger
Realizable value Assets are included at the amounts
estimated to be realized
Completeness Completeness
Accuracy & valuation Accuracy & valuation