[Anonymous]

Hello,

I was wondering if anyone could help me out with specific questions relating the management’s assertions. I fully understand the assertions and what they are used for (transactions, balances and disclosures). I run into problems when answering specific question on assertions for example:

An auditor scans a client’s investment records for the period just before and just after the year-end to determine that any transfers between categories of investments have been properly recorded. The primary purpose of this procedure is to obtain evidence about management’s financial statement assertions of:

a. Valuation and accuracy, and rights and obligations.

b. Existence, and understandability and classification.

c. Understandability and classification, and valuation and accuracy. – correct

d. Rights and obligations, and existence.

or:

An auditor most likely would make inquiries of production and sales personnel concerning possible obsolete or slow-moving inventory to support management’s financial statement assertion of:

a. Valuation and allocation. – correct

b. Understandability and classification.

c. Existence.

d. Rights and obligations.

I’m going to go over all of the transaction cycles and see if I can try and learn more of them as I think that may be the issue, but any suggestions on how to better learn to correctly answer these types of questions? With missing these types of questions my scores for Becker practice are in the mid to upper 80’s and I want solid 90’s before the test in July.

Thanks all.