Listed Below Are Six Assertions Regarding the Financial Presentations Made

question 4

Essay

Listed below are six assertions regarding the financial presentations made in the purchasing process.For each,give an example of how an auditor could use one of the typical documents in the purchasing process to test the assertion.
Occurrence
Completeness
Authorization
Accuracy
Cutoff
Classification

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Definitions:

Trade Receivables

Amounts owed to a business by its customers following the sale of goods or services on credit.

Discounted Values

Discounted values are the present values of future cash flows, calculated using a discount rate to account for the time value of money.

Present Values

The today's equivalent worth of a future money sum or cash flows, with a particular rate of return taken into account.