For Both Section A and Section B below, there is a list of management assertions. For each, identify the relevant PCAOB assertion. (e.g. existence) and then identify the appropriate procedure that is best suited for addressing the assertion. List only One Assertion and One Procedure for each question. Assertions can be used more than once, but Procedures should be used only once in each Section

Management assertion Identify PCAOB Assertion Identify the procedure (A-H below)

1.Sales and related events recorded in the sales journal

have happen and pertain to the entity.

2.Account receivable are stated at net realizable value.

3.All payables that should have been recorded have been recorded.

4.Purchases have been recorded at the proper amount.

Procedures:

A.Review the aged trial balance for significant past due accounts.

B.Examine a sample of cash disbursements in the period subsequent to year end.

C.Examine confirmations returned by creditors whose accounts are on a subsidiary trial balance of accounts payable.

D.Analyze the relationship of accounts receivable and sales and compare with relationships from preceding periods.

E.Perform sales cutoff tests to obtain assurance that sales transactions and corresponding entries for inventories and cost of goods sold are recorded in the same and proper period.

F.Test the mathematical accuracy of payables listing.

G.Vouch recorded payables to vendor invoices, receiving reports, and purchase orders.

H.Vouch recorded sales to sales invoices, shipping documents, and customer orders.