- This topic has 3 replies, 3 voices, and was last updated 8 years, 7 months ago by .
-
Topic
-
Hey Ninjas , need some help on the difference of Accuracy vs. Allocation and Valuation, I am so confused about which one apply in the particular scenario. I provide two examples below:
1. The client has written up the investment land to current market value. Client use GAAP. this affect the management assertion of Allocation and Valuation.
2. Auditor noted that the A/R subsidiary ledger is not reconcile to the control account due to a transportation error. In posting to the subsidiary ledger $4293 was inadvertently posted as 4239. This affect the management assertion of Accuracy.
I thought first one should be Accuracy because of disclosure error, whereas second one should be Allocation and Valuation because it is a account balance error.
Thank you so much!
FAR - 83, 04/2015
AUD - 73, 86, 08/2015
REG - 75
BEC - 71, rematch in 04/2016
- You must be logged in to reply to this topic.