[spineshank77]

hi everyone,

I was wondering for those MC questions that ask you to identify what kind of an assertion is this, what do you guys do?

The choices are usually like:

a) presentation and disclosure

b) valuation and allocation

c) Rights and obligations

d) existence ( or completness)

I can identify completness and existence but cant differentiate between the others despite knowing their definitions, does anyone have a way to crack these type of questions?

Thanks indeed 🙂

FAR: 79, what im done??
REG: 75
AUD: 75
BEC: 77

I would rather score four 75's than three 99's and a 74

[Anonymous]

I made a chart of the assertions and listed examples from the Wiley book and other sources under each assertion. I didn't try to be TOO logical, more treated the categorizations as CPA priesthood lore and tradition handed down in some sort of secret ceremony. Because I drove myself nuts trying to be logical, since you can make a case for more than one category for an assertion.

[mla1169]

a) presentation and disclosure–are things on the right line (like is it listed under current assets when its really a non current asset), given a description thats not misleading, and are the disclosures presented so that its understandable.

b) valuation and allocation–is it worth what the F/S says it is? If you say you have $1m in receivables and its obvious that you're only going to be able to collect $900k, the A/R account isn't valued correctly.

c) Rights and obligations–examples would be inventory that is physically in the plant and observable but the client doesn't have legal title to. Or if there is litigation pending with a probable outcome it should be an obligation on the F/S.

Hope that helps!

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[spineshank77]

Thank you so much for your help and yes that was helpful, I was trying to get logical with it as Diane said and I didnt do a very good job at that.

thanks mla1169

FAR: 79, what im done??
REG: 75
AUD: 75
BEC: 77

I would rather score four 75's than three 99's and a 74

[hopefulcpa28]

@mla1169, thank you soo much!!!

[Anonymous]

Here's how I see it.

Valuation and Allocation: Come on down! You're the next contestant on THE PRICE IS RIGHT. Basically anything to do with costs, valuation, how prices are determined, etc. How much is that doggie in the window?

Rights and Obligations: Do you have the right to the stuff? What do you have to do? Think property rights. You have the right to remain silent during the test 🙂

Existence: Is it there? If your records say it is there, what do your “lying eyes” tell you when you look in the warehouse?

Completeness: Are the numbers reflecting the whole amount of inventory for example, not just what you have in hand? Some of that may belong to someone else so don't count it (consigned to you) Or maybe some items are not in the warehouse because you consigned them to someone else. And look at the FOBs. And cutoffs too.

Presentation: Did management report the numbers in the proper place? How does managment put the number you're looking at on the financial statement?

[hopefulcpa28]

@bobkorz: That's awesome, I'm copying it!! Thank you!

[spineshank77]

Bobkorz, do you do any sort of CPA coaching? cause I would be interested in taking a class you may be tutoring! 😉

FAR: 79, what im done??
REG: 75
AUD: 75
BEC: 77

I would rather score four 75's than three 99's and a 74

[Author]

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