help!!help!!"Auditing and Assurance Services in Australia"?

Question

10.28 Moderate.In auditing trade creditors, the audit assistant has
-selected a sample of creditors from the year-end creditors' ledger:
-vouched each creditor's balance to selected invoices and subsequent cash payments;and
-agreed the total of the creditors' ledger to the trial balance and general ledger
Required
1 Which audit assertion is each of the procedures performed by the assistant directed towards?
2 Identify the assertions you believe the assistant should perform further testing on.Ignore disclosure issues.
3 In relation to the assertions identified in(2), what additional procedures would you advise the assistant to perform in order to gather sufficient appropriate audit evidence?

Answer 1

1. -selected a sample of creditors from the year-end creditors' ledger:
(Existence or occurrence)
-vouched each creditor's balance to selected invoices and subsequent cash payments;
(Rights and obligations; Valuation or Allocation)
-agreed the total of the creditors' ledger to the trial balance and general ledger
(Presentation and disclosure)

2 Identify the assertions you believe the assistant should perform further testing on.Ignore disclosure issues.
The assistant has omitted to address the completeness assertion.

3 In relation to the assertions identified in(2), what additional procedures would you advise the assistant to perform in order to gather sufficient appropriate audit evidence?
He should compare the AP individual balances to statements of account received from vendors. For regular or major vendors who do not issue statements of a/c, direct confirmation of balances should be obtained. In addition, analytical procedures, e.g. gp margin comparison, should be performed, as well as perform a search for unrecorded liabilities.

Answer 2

Well, if they weren't going to serve you if you weren't wearing any pants, I would assume they would've put that on the sign. Go ahead and walk into a restaurant without any pants on, see what they do. And just point to the sign. "It doesn't say you won't serve me if I'm not wearing pants!" See how they react. ~Avriel