Assertion Rapid Fire Flashcards by Andrew Dyer

Trace shipping documents to sales invoices and sales journal

REVENUE CYCLE / COMPLETENESS

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Review sales cutoff around year-end

REVENUE CYCLE / COMPLETENESS

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Perform analytical procedures on sales trends

REVENUE CYCLE / COMPLETENESS

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Confirm accounts receivable balances

REVENUE CYCLE / EXISTENCE > RIGHTS if confirming to verify ownership

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Recalculate sales prices and discounts on a sample of invoices

REVENUE CYCLE / ACCURACY & VALUATION

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Test the adequacy of the allowance for doubtful accounts

REVENUE CYCLE / ACCURACY & VALUATION

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Verify correct application of revenue recognition policies

REVENUE CYCLE / ACCURACY & VALUATION

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Review aging of accounts receivable for proper valuation

REVENUE CYCLE / ACCURACY & VALUATION

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Vouch a sample of recorded sales to shipping documents and customer orders

REVENUE CYCLE / EXISTENCE AND OCCURRENCE

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Inspect sales invoices and related documentation

REVENUE CYCLE / EXISTENCE AND OCCURRENCE

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Observe physical delivery of goods or services

REVENUE CYCLE / EXISTENCE AND OCCURRENCE

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Review sales contracts and shipping terms

REVENUE CYCLE / RIGHTS

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Inspect documentation for consigned goods

REVENUE CYCLE / RIGHTS

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Trace receiving reports to purchase journal and accounts payable

EXPENDITURE / COMPLETENESS

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Review unmatched receiving reports for unrecorded liabilities

EXPENDITURE / COMPLETENESS

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Inspect vendor invoices and purchase orders

EXPENDITURE / COMPLETENESS, EXISTENCE

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Perform cutoff tests on purchases near year-end

EXPENDITURE / CUTOFF AND COMPLETENESS

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Recalculate invoice amounts, including discounts and taxes

EXPENDITURE / VALUATION, ACCURACY, & ALLOCATION

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Verify proper classification of expenses and liabilities

EXPENDITURE / VALUATION, ACCURACY, & ALLOCATION

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Test accuracy of accounts payable aging and accruals

EXPENDITURE / VALUATION, ACCURACY, & ALLOCATION

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Reconcile vendor statements to accounts payable ledger

EXPENDITURE / VALUATION, ACCURACY, & ALLOCATION

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Vouch a sample of recorded purchases to vendor invoices and receiving reports

EXPENDITURE / EXISTENCE

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Confirm accounts payable balances with vendors

EXPENDITURE / OBLIGATIONS > EXISTENCE (less common but possible)

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Review vendor contracts and purchase agreements

EXPENDITURE / OBLIGATIONS

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Observe receipt of goods or services

EXPENDITURE / EXISTENCE

Inspect lease agreements and loan documents for recorded liabilities

EXPENDITURE / OBLIGATIONS

Observe physical inventory counts and trace to inventory records

INVENTORY / COMPLETENESS & EXISTENCE

Trace receiving reports to inventory records

INVENTORY / COMPLETENESS

Review cutoff of inventory receipts and shipments

INVENTORY / COMPLETENESS

Perform analytical procedures on inventory levels

INVENTORY / COMPLETENESS

Test costing methods (FIFO, LIFO, weighted average)

INVENTORY / VALUATION, ACCURACY, ALLOCATION

Inspect for obsolete or damaged inventory and test write-downs

INVENTORY / VALUATION, ACCURACY, ALLOCATION

Recalculate inventory quantities and prices in the inventory records

INVENTORY / VALUATION, ACCURACY, ALLOCATION

Review lower of cost or market adjustments

INVENTORY / VALUATION, ACCURACY, ALLOCATION

Inspect inventory for condition

INVENTORY / EXISTENCE

Confirm inventory held by third parties

INVENTORY / EXISTENCE

Inspect inventory held by third parties or on consignment to ensure it’s not recorded as owned

INVENTORY / RIGHTS & OBLIGATIONS

Review loan agreements for pledged inventory or assets

INVENTORY / RIGHTS & OBLIGATIONS

Confirm ownership through title documents or purchase contracts

INVENTORY / RIGHTS & OBLIGATIONS

Trace timecards or attendance records to payroll register

PAYROLL / COMPLETENESS

Review payroll cutoff around period-end

PAYROLL / COMPLETENESS

Inspect personnel files for completeness of employee records

PAYROLL / COMPLETENESS

Recalculate gross and net pay, including deductions and withholdings

PAYROLL / VALUATION, ACCURACY, & ALLOCATION

Verify proper classification of payroll expenses

PAYROLL / VALUATION, ACCURACY, & ALLOCATION

Test accuracy of payroll tax calculations and accruals

PAYROLL / VALUATION, ACCURACY, & ALLOCATION

Inspect employees personnel files and ID

PAYROLL / EXISTENCE

Trace payroll payments to timecards and attendance records

PAYROLL / EXISTENCE

Observe payroll distribution process

PAYROLL / EXISTENCE

Review employment contracts and payroll records to confirm payroll liabilities

PAYROLL / OBLIGATIONS

Inspect accrued payroll and related tax liabilities documentation

PAYROLL / OBLIGATIONS

Trace bank statements and canceled checks to cash receipts and disbursements journals

CASH / COMPLETENESS

Confirm bank accounts and reconcile bank statements to cash balances

CASH / COMPLETENESS

Review cutoff of cash transactions near period-end

CASH / COMPLETENESS

Foot and agree totals on cash receipts and disbursements

CASH / VALUATION, ACCURACY, & ALLOCATION

Reconcile bank statements to cash ledger balances

CASH / VALUATION, ACCURACY, & ALLOCATION

Verify accuracy of foreign currency translations if applicable

CASH / VALUATION, ACCURACY, & ALLOCATION

Confirm bank balances directly with banks

CASH / EXISTENCE

Vouch cash receipts and disbursements to bank statements and canceled checks

CASH / EXISTENCE

Observe cash on hand

CASH / EXISTENCE

Confirm bank account ownership and authorized signatories

CASH / RIGHTS & OBLIGATIONS

Review loan agreements and bank statements for recorded liabilities

CASH / RIGHTS & OBLIGATIONS

Trace acquisition documents (purchase orders, invoices) to fixed asset register

FIXED ASSET / COMPLETENESS

Review disposal documentation to ensure all disposals are recorded

FIXED ASSET / COMPLETENESS

Perform cutoff tests on asset purchases and disposals near year-end

FIXED ASSET / COMPLETENESS

Recalculate depreciation expense and accumulated depreciation

FIXED ASSET / VALUATION, ACCURACY, & ALLOCATION

Test reasonableness of asset impairments or revaluations

FIXED ASSET / VALUATION, ACCURACY, & ALLOCATION

Review disposals and related gain/loss calculations

FIXED ASSET / VALUATION, ACCURACY, & ALLOCATION

Physically inspect selected fixed assets

FIXED ASSET / EXISTENCE

Vouch additions to vendor invoices and receiving reports

FIXED ASSET / EXISTENCE

Inspect title deeds, purchase agreements, and registration documents to verify ownership

FIXED ASSET / RIGHTS

Review loan agreements for assets pledged as collateral

FIXED ASSET / RIGHTS & OBLIGATIONS

Trace disposals to authorization and removal from records

FIXED ASSET / COMPLETENESS

Confirm asset ownership through title documents

FIXED ASSET / RIGHTS & OBLIGATIONS

Assertion Rapid Fire Flashcards

(73 cards)