Assertions/Controls over JE
What assertion would be met by a control involving a review to identify unusual journal entries?
What is occurrence
This should be given to a reviewer when approving a JE
What is supporting documentation
This is the JE for recording revenue
Dr: A/R or Cash
Cr: Revenue
This assertion relates to a journal entry being recorded in the appropriate period?
What is... Cutoff
This factor relates to someone's level of skill / intelligence?
What is competency
This assertion is met by verifying that all entries were input correctly
What is... Accuracy?
Choose your fighter: Ashley or Stewart
Ashley... no one messes with Ashley
This assertion is met by reviewing for appropriateness of account classification based on the nature of the journal entry
What is... Classification?
These are two of the design factors
1. Appropriateness of Purpose of Control
2. Competency/Authority
3. Frequency/Consistency
4. Aggregation/Predictability
5. Criteria for Investigation/Follow Up
These are the elements of segregation of duties? Hint: ARC
What is...
Authorization
Recording
Custody
This assertion is met by confirming with account owners that all entries have been submitted and posted
What is... completeness.
These are the three elements that you consider for OE?
What is...
Nature
Extent
Timing
This is an ambiguous term that is made up to confuse us as auditors related to controls
What is a deviation