Rich Pugh Unit 4 Project

Rich Pugh Unit 4 Project - Unit 4 Project 7-38 It might...

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Unformatted text preview: Unit 4 Project 7-38 It might help to set up a table for this problem: Evidence Internal or External Reliability Level (a)Account Balance & (b) Assertion 1. Vendor Invoice external high a. accounts payable b. existence/occurrence completeness valuation and allocation presentation and disclosure 2. Vendor monthly statements external high a. inventory b. completeness existence/occurrence valuation and allocation presentation and disclosure 3. Sales Invoices internal low a. sales b. completeness existence/occurrence valuation and allocation presentation and disclosure 4. Shipping documents for sales internal low a. sales b. completeness existence/occurrence valuation and allocation presentation and disclosure 5. Bank statements external high a. cash b. completeness existence/occurrence presentation and disclosure 6. Employee payroll time cards internal moderate a. salaries payable b. completeness existence/occurrence rights and obligations 7. Receiving reports for goods received from vendors external high a. inventory b. existence/occurrence rights and obligations valuation and allocation 8. Sales contracts internal moderate a. sales b. existence/occurrence rights and obligations 9. Purchase commitment contracts internal moderate a. inventory b. existence/occurrence rights and obligations 10. Lease agreements external high a. lease receivable b. completeness rights and obligations presentation and disclosure 11. Estimated warranty schedules internal low a. warranty expense b. existence/occurrence completeness rights and obligations valuation and allocation presentation and disclosure 12. Purchase order stored on client computer and received electronically internal moderate a. purchases b. existence/occurrence completeness 13. Credit rating reports external high a. accounts payable b. rights and obligations presentation and disclosure 14. Vendor invoice stored on client computer and received electronically external high a. purchases b. existence/occurrence completeness 7-44 Assertion Tested Most persuasive evidence (Highlight ONE of the choices for each scenario) Why did you choose that particular method? (Why is it more reliable than the other choice(s)? 1.existence/occurrence completeness Confirm A/R with businesses Confirming receivables with customers is more reliable because it will show that the sales exist with the client Confirm receivables with customers 2.completeness Visually inspect components A visual inspection will be more reliable because an actual count can be made for the electronic components....
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Rich Pugh Unit 4 Project - Unit 4 Project 7-38 It might...

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