Chapter 7_Problem 32 37 Solutions

Chapter 7_Problem 32 37 Solutions - ACCT 407 Solutions to...

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ACCT 407 Solutions to 7-32 with Assertions and 7-37 7-32 # Type of Evidence Type of Assertion Assertion(s) 1 Inquiry Balances Valuation and Allocation—realizable value 2 Observation Transactions Occurrence 3 Inspection of tangible assets— physical examination Balances Existence, Completeness (because you might find out they have overstated or understated inventory, respectively) Valuation—realizable value (if you are attending to quality as you count) 4 Confirmation Note: if you are not confident of the integrity of the attorney, you may need to consider this to be inquiry evidence Balances and Transactions (mainly balances) Completeness. 5 Recalculation Balances (because it is a “listing.” If it had been an invoice it would have been transactions) Valuation—Accuracy 6 Confirmation Presentation and Disclosure Classification 7 Inspection of records and documents-- Documentation Presentation and Disclosure Classification 8 Analytical Procedures Balances and Transactions Not specific—probably valuation. If the amount is unreasonable, it may suggest that the occurrence or completeness assertion for transactions should be examined further. 9 Inquiry Transactions All 10 Reperformance Transactions Accuracy—posting and summarization 11 Observation Balances Existence, Completeness (because you might find out they have overstated or understated
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This note was uploaded on 02/09/2011 for the course ACCT 407 taught by Professor Smith during the Spring '11 term at University of Louisiana at Lafayette.

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Chapter 7_Problem 32 37 Solutions - ACCT 407 Solutions to...

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