Assertion Auditing objectives What could go wrong? Mitigating controls Data analysis auditing procedures Data requirements I l' .i'll" .. III' Existence Amounts reported in An order is placed and Debits to accounts Compare debits to Sales amounts the nancial a receivable is receivable are only accounts receivable Cash receipt statements represent recorded without any generated from the against recorded amounts valid receivables. product being shipped. order entry system. sales. Customer names Review and test Transaction dates subsequent receipts. Transaction Evaluate proper numbers segregation of duties General ledger by examining postings by postings by source preparer and and preparer (e.g., source {e.g., order sales only entered by entry) authorized salesclerk). A shipping number Verify that every Customer names and FedEx sales transaction has Transaction identication number a shipping number numbers are entered into the and FedEx Shipping numbers system as evidence of identication FedEx ID numbers order fulllment and number. Sales amounts discrepancies are Analyze gross Cost of goods sold investigated. margin percentage amounts trends by month and Transadion dates by customer. Completeness Valuation and allocation Classication and understandability