Assertions
The assertion is that the entity has the rights to the assets it owns and is obligated under its reported liabilities and that disclosed rights and obligations actually relate to the reporting entity.
what are Rights and obligations
IPE
what is information provided by entity
America's football team
what is Dallas Cowboys
is an intermediary set of accounts that are linked to the general ledger
what is sub ledger
Texas National flower
What is blue bonnet
The assertion is that all business events to which the company was subjected were recorded, all reported asset, liability, and equity balances have been fully reported, and all transactions that should be disclosed have been disclosed.
what is completeness
GAAP
what are Generally Accepted Accounting Principles
America's baseball team
what is New York Yankees
Controls performed that require human intervention. Manual controls are more prone to error; therefore, testing sample sizes are usually larger than automated controls.
what are manual controls
Texas National animal
What is longhorn
The assertion is that the full amounts of all transactions were recorded, without error, and that all information disclosed is in the correct amounts, and which reflect their proper values.
what is accuracy
IUC
what is information used by control
America's basketball team
what is Los Angeles Lakers
is a set of numbered accounts a business uses to keep track of its financial transactions and to prepare financial reports.
what is general ledger
Texas nickname
What is the lone star state
The assertion is that recorded business transactions actually took place and that disclosed transactions have indeed occurred.
what is occurrence
GAAS
What are Generally Accepted Auditing Standards
America's hockey team
what is Chicago Blackhawks
It is also referred as sub-process, secondary, activity or operative control. It can fail without affecting a whole process. It is in place to monitor certain information. It have an indirect effect on the risk of material misstatement.
what is non-key control
Texas largest city
What is Houston
The assertion is that the information included in the financial statements has been appropriately presented and is clearly understandable.
what is understandability
SEC
What is securities and exchange committee
America's soccer team
What is Seattle FC
Enacted by the U.S. Congress in response to several cases of accounting fraud by SEC regulated companies, most notably Enron.
The main focus is to assure that published financial statements of affected companies are complete, accurate, timely, and presented in accordance with Generally Accepted Accounting Principles (GAAP).
What is Sarbanes-Oxley Act (SOX)
Texas is larger than ____ European country
What is any/all