Term
| What are the PCAOB (think old school) Mgmt. Assertions (AS15)? |
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Definition
1) Existence or occurrence (the truth)
2) Rights and Obligations
3) Completeness (the whole truth)
4) Valuation & Allocation
5) Presentation and Disclosure |
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Term
| Existence or Occurrence (PCAOB) |
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Definition
| Assets or liabilities of an entity exist at a given date or the recorded transactions have occurred during a given period. |
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Term
| Rights & Obligations (PCAOB) |
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Definition
| Assets are the rights of the entity and liabilities are the obligations of the entity at a given date. |
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Term
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Definition
| All transactions and accounts that should be presented in the F/S's are included. |
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Term
| Valuation & Allocation (PCAOB) |
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Definition
| Transactions are recorded at the correct amount. |
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Term
| Presentation & Disclosure (PCAOB) |
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Definition
| The components of the F/S's are properly classified, described, and disclosed. |
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Term
| +1 Mathematical Accuracy (PCAOB) |
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Definition
| -assumed in valuation & allocation; some firms break it out |
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Term
| What are the three types of Management Assertions provided by the AICP (think new school)? |
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Definition
1) Transaction assertions
2) Balance assertions
3) Presentation & Disclosure assertions |
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Term
| Name the AICPA TRANSACTION assertions |
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Definition
-Occurrence
-Completeness
-Cutoff
-Accuracy
-Classification |
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Term
| Name the AICPA BALANCE assertions |
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Definition
-Existence
-Rights & Obligations
-Completeness
-Valuation & Allocation |
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Term
| Name the AICPA PRESENTATION & DISCLOSURE assertions |
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Definition
-Occurrence and Rights & Obligations
-Completeness
-Classification & Understandability
-Accuracy & Valuation |
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Term
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Definition
| events giving rise to transactions have taken place |
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Term
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Definition
| all transactions have been recorded and are recorded |
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Term
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Definition
| transactions have been recorded in the correct accounting period |
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Term
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Definition
| transactions have been recorded at the correct amount (similar to valuation & allocation) |
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Term
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Definition
| transactions have been posted to the proper account (grouped appropriately; not allocation, more like presentation & disclosure) |
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Term
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Definition
| assets, liabilities, and equity interests exist |
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Term
| Rights & Obligations (BA) |
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Definition
| entity has legal claim on all assets and legal responsibility for all liabilities (most overrated- don't pick for all questions) |
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Term
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Definition
| all assets, liabilities, and equity interests that should have been recorded have been recorded |
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Term
| Valuation & Allocation (BA) |
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Definition
| items are recorded at appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded |
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Term
| Occurrence and Rights & Obligations (PDA) |
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Definition
| disclosed events and transactions have occurred and pertain to the entity |
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Term
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Definition
| all disclosures have been included |
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Term
| Classification & Understandability (PDA) |
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Definition
| all accounts are appropriately grouped; disclosures are clearly expressed |
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Term
| Accuracy & Valuation (PDA) |
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Definition
| financial and other information are disclosed fairly and at appropriate amounts |
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Term
| relating to the "old school," what is cutoff made up of? |
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Definition
| Existence or Occurrence and Completeness |
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