In Class #5.1 – Identifying audit assertions
For each of the following terms, identify the related assertion:
(a) Inventory is recorded at the lower of cost and net realizable value.
(b) All delivery vans recorded in the accounting records are owned by the entity.
(c) All payroll-related accruals at year end are recorded.
(d) The accounts receivable sub-ledger agrees to the general ledger control account.
(e) All sales were recorded in the correct period.
(f) There is no inventory on consignment.
(g) Purchases made after year end were recorded in the subsequent year.
(h) There is no impairment of goodwill.
(i) There are 10 delivery vans in the parking lot.
(j) There are no undisclosed contingent liabilities In Class #5.2 – Confirmation evidence & Adequacy of documentation and audit evidence
CBA Chartered Accountants is a successful mid-tier accounting firm with a large range of clients
across Canada. During 2011, CBA gained a new client, Health Care Group (HCG), which owns
100 percent of the following entities:
River Valley Centre, a private treatment centre
Gardens Nursing Ltd., a private nursing centre
Laser Care Limited, a private clinic that specializes in laser treatment of skin defects.
The year end