Hi All,
I am studying for AUD and I have noticed what seems to be inconsistencies in the Becker Material. So throughout A3 Tim repeatedly uses COVER U for all assertions.
It then breaks them down on Page A3-18
Transaction – Completeness, Cut Off, Accuracy, Classification, Occurrence
Balances – Completeness, Allocation & Valuation, RIghts & Obligation, Existence
Disclosures – Compl, Understandability & Class, Rights & Oblig, Valuation & Accuracy
So his mnemonics “COVEU”, “CVER”, “CVRU” for the three levels.
So I moved into chapter 4 and studied the transaction cycles and what I noticed is that the assertions dont match up.
For example, “Presentation & Disclosure” for the Revenue Cycle has assertions of:
Completeness
Valution, Accuracy AND Allocation
Rights, Obligations AND Occurrence
Understandability & Classification
So his Mnemonic is “CVRU” for disclosures, but revenue (and many other cycles) have additional assertions such as allocation and occurrence in this case.
Do we really need to memorize every single assertion as it pertains to every single class for every single transaction cycle? How on earth can one remember and differentiate that?
Overall, I understand the assertions and what they pertain to and how to test for them.
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