Contemp Auditing 5-3 6-22

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Contemporary Auditing
Chapter 5 – Comprehensive Question 5-30

(Assertions) In planning the audit of a client’s financial statements, an auditor identified the following issues that need audit attention. Please only write in the associated assertion

1. Valuation or allocation
2. Completeness
3. Existence and occurence
4. Completeness
5. Rights and obligations
6. Completeness
7. Valuation and allocation
8. Existence and occurence
9. Presentation and disclosure
10. Valuation or allocation
11. Presentation and disclosure

Identify the assertion for items 1 through 11 above.

Chapter 6 Comprehensive Question 6-22

(Audit evidence) During the course of an audit, the auditor examines a wide variety of documentation. Listed below are some forms of documentary evidence and the sources from which they are obtained. Please enter just the number associated with a appropriate “source” found below: A.

__1__ 1. Bank statement sent directly to the auditor by the bank. __2__ 2. Creditor monthly statement obtained from client’s files. __4__ 3. Vouchers in client’s unpaid voucher file.
__4__ 4. Duplicate sales invoices in filled order file.
__4__ 5. Time tickets filed in payroll department.
__4__ 6. Credit memo in customer’s file.
__4__ 7. Material requisitions filed in storeroom.
__2__ 8. Bank statement in client’s files.
__4__ 9. Management working papers in making accounting estimates. __3__ 10. Paid checks returned with bank statement in (1) above. __2__ 11. Letter in customer file from collection agency on collectibility of balance. __4__ 12. Memo in customer file from treasurer authorizing the write-off of the account.

a. Classify the evidence by source into one of four categories: (1) directly from outsiders,
(2) indirectly from outsiders,
(3) internal but validated externally, and
(4) entirely internal.

B. Comment on the reliability of the four sources of documentary evidence.

Directly from...
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