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Ch$03$ General Objectives for Asset Accounts $[$LO$3-4]$

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General Objectives for Asset Accounts

Read the overview below and complete the activities that follow.

The audit procedures for each financial statement account must be tailored to uncover potential misstatements in each account.

CONCEPT REVIEW:

While specific audit procedures must be tailored to each type of account, it is important to ensure that the auditors are meeting general objectives based on assertions.

Part $1-$ Matching

Match each audit procedure example to its correct general objective.

Establish completeness of the recorded assets

Establish that the company has rights to the asset

Determine the appropriate valuation of the assets

Determine the appropriate financial statement presentation and disclosure of the asset

Verify the cutoff of transactions

Establish the existence of assets

Match each of the options above to the items below.

Cash can be verified by physical inspection.

No answer $123456$

Rights to cash can be verified by sending a confirmation.

No answer $123456$

Examining shipping documents helps to determine if assets are properly recorded.

No answer $123456$

Auditors examine transactions just before and just after year end.

No answer $123456$

Vouch the cost of acquisition to paid checks.