Cycles, Tests And Assertions

Front 1

Sales and Receivables/Revenue test: Confirm A/R(GAAS, Positive and negative, Follow-up)

Back 1

existence/occurrence

Front 2

Sales and Receivables/Revenue test: Vouch recorded A/R to shipping documents

Back 2

existence/occurrence

Front 3

Sales and Receivables/Revenue test: Vouch recorded sales to customer orders and shipping documents

Back 3

existence/occurrence

Front 4

Sales and Receivables/Revenue test: Inquiries of management

Back 4

rights/obligations

Front 5

Sales and Receivables/Revenue test: Track cash receipts to client bank accounts

Back 5

rights/obligations

Front 6

Sales and Receivables/Revenue test: Analyze right of return policies for sales

Back 6

rights/obligations

Front 7

Sales and Receivables/Revenue test: Reconcile A/R subsidiary total to general ledger

Back 7

completeness

Front 8

Sales and Receivables/Revenue test: Sales cutoff test (Sales/Receivable in period when goods shipped)

Back 8

completeness

Front 9

Sales and Receivables/Revenue test: Analytical procedures (ratios)

Back 9

completeness

Front 10

Sales and Receivables/Revenue test: Cash receipts cutoff (Receipt of cash in period when A/R reduced)

Back 10

completeness

Front 11

Revenue test: Account for numerical sequence of sales-related documents

Back 11

completeness

Front 12

Revenue test: Vouch shipping documents to sales invoices and journal entries

Back 12

completeness

Front 13

Revenue test: Age the A/R

Back 13

valuation/allocation

Front 14

Revenue test: Trace subsequent cash receipts

Back 14

Valuation/allocation

Front 15

Revenue test: Review delinquent customers' credit ratings

Back 15

valuation/allocation

Front 16

Revenue test: Inspect financial statements for proper classifications of gross sales, net sales, net A/R

Back 16

presentation/disclosure

Front 17

Revenue test: Inquiry/Review for related-party, discounted, assigned receivables

Back 17

presentation/disclosure

Front 18

Revenue test: Read note disclosures for adequacy (accounting policies, pledges, related parties)

Back 18

presentation/disclosure

Front 19

Revenue test: Obtain management representation letter

Back 19

presentation/disclosure

Front 20

Revenue test: Ensure appropriate disclosure of reportable segments

Back 20

presentation/disclosure

Front 21

Cash cycle test: Count cash on hand

Back 21

existence/occurrence

Front 22

Cash cycle test: Obtain and inspect a bank confirmation

Back 22

existence/occurrence

Front 23

Cash cycle test: inspect or prepare bank reconciliations for each account

Back 23

existence/occurrence

Front 24

Cash cycle test: obtain and inspect a cutoff bank statement

Back 24

existence/occurrence

Front 25

Cash cycle test: prepare and analyze a schedule of interbank transfers

Back 25

existence/occurrence

Front 26

Cash cycle test: prepare a proof of cash (beg/ending balances with changes)

Back 26

existence/occurrence

Front 27

Cash cycle test:inquiries of management, few specific tests normally performed in this assertion

Back 27

rights/obligations

Front 28

Cash cycle test: prepare cash cutoff tests

Back 28

completeness

Front 29

Cash cycle test: analytical procedures (comparisons to budgets)

Back 29

completeness

Front 30

Cash cycle test: few specific tests normally performed except special circumstances

Back 30

valuation/allocation

Front 31

Cash cycle test:inquire of management about disclosures

Back 31

presentation/disclosure

Front 32

Cash cycle test: determine restricted cash (sinking funds) reported as noncurrent asset

Back 32

presentation/disclosure

Front 33

Cash cycle test: assess SCF (proper presentation, classification, consistence with FS)

Back 33

presentation/disclosure

Front 34

Payables and Purchases cycle test: Confirmation perhaps (blank form, small or zero balances included)

Back 34

existence/occurrence

Front 35

Payables and Purchases cycle test: Vouch recorded payables to documentation

Back 35

existence/occurrence

Front 36

Payables and Purchases cycle test: Reconcile vendor statements to vendor accounts

Back 36

existence/occurrence

Front 37

Payables and Purchases cycle test: Inquiries of management

Back 37

rights/obligations

Front 38

Payables and Purchases cycle test: Vouch recorded payables to documentation

Back 38

rights/obligations

Front 39

Payables and Purchases cycle test: Reconcile A/P ledger subsidiary ledger with general ledger

Back 39

completeness

Front 40

Payables/Purchases cycle test: Prepare/analyze purchases cutoff test (title and recording in same period)

Back 40

completeness

Front 41

Payables/Purchases test: Analytical procedures (A/P turnover ratio)

Back 41

completeness

Front 42

Payables/Purchases test: Prepare/analyze cash disbursements cutoff test (payment and A/P recording same)

Back 42

completeness

Front 43

Payables/Purchases test: Trace supporting documentation (voucher) to general/subsidiary ledger

Back 43

completeness

Front 44

Payables/Purchases test: Trace subsequent payments to recorded payables

Back 44

completeness

Front 45

Payables/Purchases test: Search for unrecorded payables (search suspense files)

Back 45

completeness

Front 46

Payables/Purchases test: Few specific tests-evidence generated from other assertions

Back 46

valuation/allocation

Front 47

Payables/Purchases test: Recalculate mathematical accuracy of vendor invoices

Back 47

valuation/allocation

Front 48

Payables/Purchases test: Review payables for items affected by cash discounts

Back 48

valuation/allocation

Front 49

Payables/Purchases test: Inspect financial statements for proper presentation (A/P=CL)

Back 49

presentation/disclosure

Front 50

Payables/Purchases test: Read footnote disclosures (significant A/P to related parties)

Back 50

presentation/disclosure

Front 51

Payables/Purchases test: Review A/P for material debits, long-term payables, nontrade payables

Back 51

presentation/disclosure

Front 52

Payable/Purchases test: Review contracts or vendor statements for purchase commitments

Back 52

presentation/disclosure

Front 53

Payables/Purchases test: Obtain management representation letter

Back 53

presentation/disclosure

Front 54

Inventory test: Observation of inventory

Back 54

existence/occurrence

Front 55

Inventory test: Review use and control over inventory tags and summary sheets

Back 55

existence/occurrence

Front 56

Inventory test: Prepare/analyze test counts and inventory cutoff

Back 56

existence/occurrence

Front 57

Inventory test: Confirm or investigate inventories held in public warehouses

Back 57

existence/occurrence

Front 58

Inventory test: Vouch recorded purchases to documentation

Back 58

rights/obligations

Front 59

Inventory test: Consider and review client/industry practices for consigned goods

Back 59

rights/obligations

Front 60

Inventory test: Analytical procedures (inventory turnover, vertical analysis)

Back 60

completeness

Front 61

Inventory test: Prepare/analyze purchases and sales cutoff tests

Back 61

completeness

Front 62

Inventory test: Compare recorded costs to current replacement costs (vendor price lists)

Back 62

valuation/allocation

Front 63

Inventory test: Analytical procedures (turnover ratio)

Back 63

valuation/allocation

Front 64

Inventory test: Tests costs of manufactured items (DM, DL, and O/H allocation)

Back 64

valuation/allocation

Front 65

Inventory test: Make management inquiries concerning obsolete, excess inventory

Back 65

valuation/allocation

Front 66

Inventory test: Read financial statements for proper classification and note disclosure

Back 66

presentation/disclosure

Front 67

Inventory test: Inquire of management (consigned goods, commitments, pledging)

Back 67

presentation/disclosure

Front 68

Inventory test: Obtain a management representation letter

Back 68

presentation/disclosure

Front 69

PPE test: Inspect plant additions (vouch to supporting documentation, observation)

Back 69

existence/occurrence

Front 70

PPE test: Test additions and disposals cutoff

Back 70

existence/occurrence

Front 71

PPE test: Examine titles and leases

Back 71

rights/obligations

Front 72

PPE test: Inspect records of purchase

Back 72

rights/obligations

Front 73

PPE test: Inspect insurance policies

Back 73

rights/obligations

Front 74

PPE test: Inspect property tax records

Back 74

rights/obligations

Front 75

PPE test: Perform analytical procedures (plant assets to total assets)

Back 75

completeness

Front 76

PPE test: Reconcile subsidiary and general ledgers

Back 76

completeness

Front 77

PPE test: Analyze repairs and maintenance (should have been capitalized?)

Back 77

completeness

Front 78

PPE test: Vouch additions and disposals

Back 78

valuation/completeness

Front 79

PPE test: Test depreciation

Back 79

valuation/allocation

Front 80

PPE test: Read financial statements for appropriate classification and disclosure

Back 80

presentation/disclosure

Front 81

PPE test: Inquire of management

Back 81

presentation/disclosure