Assertions are expressed or implied representation by management that are reflected in the financial statement components. The auditor performs audit procedures to gather evidence to test those assertions.

Your client is ABC Appliance Company, an appliance wholesaler. Determine an audit procedure for each of the transaction types in each business cycle, and discuss your results. Include the following transaction cycles:

• Sale of goods or rendering of service for cash or credit
• Receipt of cash from the customer in payment for the goods or services
• The return of goods by customers

Consider each business cycle component in your analysis, as follows:

• Assertion
• Control
• Audit procedures

Analyze each business cycle, and discuss. For each business cycle, you will describe the assertion and the corresponding control.