Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
8 Cards in this Set
- Front
- Back
|
Substantive Testing of Investing
(CAVE CROC) Completeness |
tested by comparing prior-period amounts with current amounts and expected returns on investments with actual recorded amounts; prepare a schedule from subsidiary records and reconcile the amounts with the balance in gl & fs; evaluating contracts & agreements to determine whether all derivatives and hedges have been identified & reported
|
|
|
Substantive Testing of Investing
(CAVE CROC) Accuracy |
tested by recalculating interest revenue to determine that interest revenue, based on stated rates for recorded investments
|
|
|
Substantive Testing of Investing
(CAVE CROC) Valuation & Allocation |
tested by vouching recorded amounts for trading securities & available for sale securities to market quotations; vouching recorded cost for held to maturity securities to market quotations; determining that transfers b/t categories of investments are at fair value
|
|
|
Substantive Testing of Investing
(CAVE CROC) Existence |
tested by physically inspecting & counting securities in the client's possession; confirming securities with the issuer
|
|
|
Substantive Testing of Investing
(CAVE CROC) Cutoff |
tested by examining transaction made near year end to ensure in proper period
|
|
|
Substantive Testing of Investing
(CAVE CROC) Rights & Obligations |
tested by tracing dividend and interest revenue to determine that revenue has been properly recorded
|
|
|
Substantive Testing of Investing
(CAVE CROC) Occurrence |
tested by vouching recorded cost to documentation
|
|
|
Substantive Testing of Investing
(CAVE CROC) Classification & Understandability |
tested by reading financial statements to determine that individual trading, available for sale, held to maturity securities are reported as current or noncurrent as appropriate
|
