itor needs to obtain an understanding of the overall internal control of a company, the auditor first needs to consider the elements of the control environment. To assist the auditor in assessing the level of control risk, the following tests of controls were designed to allow the auditor to determine if the company’s related controls were operating effectively in the revenue cycle. Determine which of the four management assertion(s) apply to each individual sales (revenue) control being discussed. Hint: many have more than one assertion. Management Assertions: Existence & Occurrence, Rights, Completeness, Valuation 8. Monthly statements are mailed to customers. Which management assertions apply to this control?
Auditing Sales/Revenue Transactions
When an auditor needs to obtain an understanding of the overall internal control of a company, the auditor first needs to consider the elements of the control environment. To assist the auditor in assessing the level of control risk, the following tests of controls were designed to allow the auditor to determine if the company’s related controls were operating effectively in the revenue cycle.
Determine which of the four management assertion(s) apply to each individual sales (revenue) control being discussed. Hint: many have more than one assertion.
Management Assertions: Existence & Occurrence, Rights, Completeness, Valuation
8. Monthly statements are mailed to customers. Which management assertions apply to this control?
9. The computer assigns a number to every delivery receipt. Which management assertions apply to this control?
10. All sales returns are approved by the vice president of sales. Which management assertions apply to this control?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
