Occurrence of revenues was tested by tracing revenues recorded in the subledger and tracing them to the
Question:
Occurrence of revenues was tested by tracing revenues recorded in the subledger and tracing them to the general ledger.
To test accuracy and completeness of the loss from the uninsured flood in the store, inquiry was made of Jean-Pierre. Per Jean-Pierre, the amount recorded on the income statement represents the cost of the flooring and shelves that were damaged. Jean-Pierre also stated that the net book value (cost less accumulated amortization) of the floors and shelves is difficult to measure because they were originally recorded as part of the building, but $40,000 is his best estimate. This is a reasonable explanation, so no further work was done
Evaluation two audit procedures above, Why they are not sufficient to test the assertion, or does it test the assertion incorrectly?
Write Two more audit procedures for each procedure stating the related assertion it tests?
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina