Listed below are different types of potential misstatements that could occur. Match the relevant assertion with...
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Listed below are different types of potential misstatements that could occur. Match the relevant assertion with each item. The assertions may be used once, more than once, or not at all. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The accounts payable balance might include amounts owed to fictitious vendors. Payroll expense that was incurred but not paid at the end of the year has not been accrued. Accounts receivable has not been adjusted for potential bad debts. A note disclosure is missing about the client's available line of credit from a financial institution. Repairs and maintenance expense is recorded as depreciation expense. Inventory has been received by the client, but it has not been recorded by the end of the period. Interest expense may not be recorded at an appropriate amount. The note about the client's defined benefit plan is not expressed clearly. Sales transactions have been recorded, but there has been no transfer of goods to customers. The gain on sale of a piece of equipment is recorded as sales revenue. Cutoff Accuracy and valuation Existence Classification and understandability Occurrence and rights and obligations Classification Accuracy Valuation and allocation Rights and obligations Occurrence Completeness 5 Listed below are different types of potential misstatements that could occur. Match the relevant assertion with each item. The assertions may be used once, more than once, or not at all. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The accounts payable balance might include amounts owed to fictitious vendors. Payroll expense that was incurred but not paid at the end of the year has not been accrued. Accounts receivable has not been adjusted for potential bad debts. A note disclosure is missing about the client's available line of credit from a financial institution. Repairs and maintenance expense is recorded as depreciation expense. Inventory has been received by the client, but it has not been recorded by the end of the period. Interest expense may not be recorded at an appropriate amount. The note about the client's defined benefit plan is not expressed clearly. Sales transactions have been recorded, but there has been no transfer of goods to customers. The gain on sale of a piece of equipment is recorded as sales revenue. Cutoff Accuracy and valuation Existence Classification and understandability Occurrence and rights and obligations Classification Accuracy Valuation and allocation Rights and obligations Occurrence Completeness 5
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Sr No Potential Mistatements Relevant Assertions 1 Accounts Payable Existence Rights and Obliga... View the full answer
Related Book For
College Mathematics For Business Economics, Life Sciences, And Social Sciences
ISBN: 978-0134674148
14th Edition
Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker
Posted Date:
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