[Anonymous]

Can someone explain which management assertion is kiting related to? completeness/cutoff or allocation/existence. Thanks.

[Anonymous]

I think it would be existence, since kiting tries to make it look like assets (cash) exists that when in reality they don't. Been awhile since I took AUD, though, and I've never worked in auditing, so someone else may know better than I do…

[RE2PECT]

I took AUD a couple weeks ago and moved on to BEC so a lot of AUD memory has already been replaced by BEC material, but if I'm not mistaken it relates to cutoff since it deals with cash transfers at the end of the year.

FAR: 75 Roger & Ninja (notes/flashcards/audio/MCQ)
AUD: 73, 81
BEC: 71, retake 8/29
REG:

[MaLoTu]

I could definitely be wrong, but I feel that because kiting is fraud it does not actually pertain to a assertion? Management has to assert that the FS are free from material misstatement due to fraud and error. The one way kiting could be discovered is by cutoff testing, but the cutoff assertion is to make sure make sure that all transactions have been reported in the proper financial period.

[Author]

Replies