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13 Cards in this Set
- Front
- Back
Sales shipped FOB destination are recorded when shipped. Some of these are in transit at the balance sheet date. What account balance assertion is violated? |
existence-- A/R, sales, COGS completeness-- inventory |
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An inventory purchase is received but not recorded until the company pays for the goods. What account balance assertion is violated? |
completeness |
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No loss is recorded or disclosed for a pending lawsuit against the client that is material, probable, and can be estimated. What account balance assertion is violated? |
Completeness |
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Repair costs that should be expensed are capitalized. What account balance assertion is violated? |
existence--fixed asset completeness--expense account |
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Sales shipped FOB shipping point are recorded before the balance sheet date but shipped until after the balance sheet date. What account balance assertion is violated? |
existence completeness |
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Wages earned but not paid by the balance sheet date are not recorded. What account balance assertion is violated? |
completeness |
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Collections from customer received after the balance sheet date are recorded as of the balance sheet date. What account balance assertion is violated? |
existence--cash completeness--A/R |
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Reprocessing involves selecting a sample from a population of source documents and reprocessing them to be sure they have all been properly recorded-- relates to what? |
completeness |
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Reprocessing provides evidence that valid transactions that have been recorded is--- |
completeness |
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Vouching involves taking a sample of already recorded transactions and tracing them back to their original source. This relates to-- |
existence |
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Vouching provides evidence on the assertion that recorded transactions are valid. |
existence |
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A sample of items recorded in the sales journal is traced back to shipping documents and customer orders is-- completeness or existence? |
existence |
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Taking a sample from the client's shipping records and tracing that sample through internal processes and into the sales journal and general ledger is -- completeness or existence? |
completeness |