[jasonrobbins]

Can anyone give me an example of these? I just need an example because Becker does a terrible job explaining what these even mean….

Transaction class- no idea…

Account balance…is this like A/R or A/P?

Disclosure item: again no idea…

It says that substantive procedures are required for all relevant assertions related to these three above. I just figured out what the hell they meant by assertion…

I’m finding out that Audit is way harder than Reg in my opinion…there is no way I am going to be able to memorize all this stuff…I have no audit experience (but I didn’t have any tax experience either and I passed, but my parents are both tax CPAs).

AUD- 97 1x
REG- 81 1x
BEC- 79 1x
FAR- 88 1x

DONE!

10/1/12 to 2/28/14

[Anonymous]

This concept relates to Management's Assertions –

“COVER U” –

Completeness,

Cut-Off,

Valuation, Allocation and Accuracy,

Existence and Occurrence,

Rights and Obligations and

Understandability and Classification.

For account balances Completeness, Valuation, Allocation & Accuracy, Existence and Occurrence, and Rights and Obligations are the relevant assertions. (CVER)

For transactions, the relevant assertions are: Completeness, Cut-Off, Valuation, Allocation and Accuracy, Existence and Occurrence, and Understandability and Classification. (COVEU)

For Disclosures the relevant assertions are: Completeness, Valuation, Allocation, and Accuracy, Rights and Obligations, and Understandability and Classification. (CVRU)

The way I understand, the account balances, transactions and disclosures are exactly what they say they are. Each one has different relevant assertions that should be considered when designing audit tests and determining directional testing (whether to vouch or trace, etc.)

Hopefully that helps a little – that's what I understand about it.

[jasonrobbins]

Thanks for the response!

The way I understood it was that each account, transaction, and disclosure had assertions relevant to each but that wasn't what they were. I am still wondering what a disclosure item is…I work in finance and can only wonder what this means…

AUD- 97 1x
REG- 81 1x
BEC- 79 1x
FAR- 88 1x

DONE!

10/1/12 to 2/28/14

[Anonymous]

The Financial Statements are required to include certain disclosures. For example, Contingent Liabilities are required to be disclosed in the financial statements if there is a reasonable possibility that the liability will be realized.

[Author]

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