You are given the several sections of an audit program. The sections are listed below: Cash Accounts Receivable and Sales Inventory Fixed Assets Investments Short-term Liabilities Payroll Long-Term Liabilities Stockholders Equity You are tasked to select any four of the above sections, and to identify the assertion(s) satisfied with each of those audit procedures. Examples are given in each of the audit component sections as guidance.

Audit Program for Cash: Procedures Assertion(s) Tested: 1-Obtain a bank cutoff statement directly from the bank. Trace all checks, deposits, -Accuracy and other cash changes from the cutoff statement to receipts and disbursements -Completeness Cutoff records, paying attention to dates and amounts. 2-Prepare a schedule of bank transfers showing all transfers between the bank accounts during the last week of the audit period and the first week of the subsequent period. This will help detect for kiting.

3-Obtain or prepare a year-end bank reconciliation or proof of cash for each bank account. Trace amounts to the schedule of bank transfers, cash receipts and payments journals, year-end reconciliation, year-end bank statement, and cutoff bank statement.

4-Confirm all cash balances held by third parties, such as banks and other financial institutions. Could be done using a standard bank confirmation.

5-Count all cash on hand. If cash is located at multiple locations, count cash simultaneously to avoid double counting.

6-Account for the numeric sequence of cancelled checks. Investigate missing checks.

7-Investigate any checks made out to cash or bearer. Need to verify the usage of the funds.

8-Investigate any checks that were returned by the bank because of insufficient funds.

9-Review and recalculate translations of foreign currencies as to verify valuation.

10-Trace a sample of entries from cash receipts journal to accounts receivable subsidiary ledger to bank statements to deposit slips. This verifies that receivables were written off when cash was collected.

11-Trace a sample of entries from cash payments journal to accounts payable subsidiary ledger to bank statement to cancelled checks. This verifies that payables account was reduced when payment was made.

12-Inquire of management to ascertain the existence of special arrangements or restrictions, e.g. compensating balance arrangements, security arrangements, written guarantees.

Audit Program Accounts Receivable and Sales: Procedures Assertion(s) Tested 1-Confirm year-end accounts and notes receivables with debtors using positive and -Existence negative confirmations. This is to verify the existence, rights and valuation of the A/R -Rights balances. -Valuation 2-Test cutoff to determine whether the sales and receivables were recorded in the proper period.

3-Perform analytical procedures to determine whether recorded sales and receivable balances appear to be reasonable.

4-Reviewing the collectability of receivables by examining cash collected after year-end assesses the adequacy of the allowance of doubtful accounts.

5-Determine that accounts receivable are recorded at net realizable value by reviewing the adequacy of the allowance for doubtful accounts.

6-Foot (add columns) daily sales summaries and trace to sales journal to ensure that sales figures were properly brought forward.

7-Test the accuracy of the aged accounts receivable schedule to assess the reasonableness of the allowance for doubtful accounts.

8-Trace a sample of shipping documents to sales journal to determine that shipped goods were recorded as sales and to the accounts receivable subsidiary ledger to determine that shipments were recorded as receivables.

9-Account for the numerical sequence of shipping documents and sales invoices to determine that all sales were recorded.

10-Perform sales and sales return cutoff tests to make certain that the events were recorded in the proper period.

11-Review the financial statements to determine whether accounts receivable and sales are properly classified.

12-Examine bank confirmation forms to determine if accounts receivables have been pledged as collateral for a bank loan.

13-Inquire of management whether discounted or pledged accounts receivables exist and are properly disclosed.