[bigbuk]

So I think most people struggle with remembering mgt. assertions and the related procedure to test for them. I was curious as to if people found a specific way to help remember what pertains to each class or transaction or little tips that people used. An example would be that completeness assertion is in my experience usually related to tracing evidence from document to JE, but under inventory you perform a cutoff procedure to test completeness. Any advice would be greatly appreciated!

[CPA2BEE]

Assertions are truly the worst. Break down the question – determine whether they are asking about an account balance, transaction, or disclosure. There are certain assertions that apply to each, so that in itself can eliminate a wrong answer or two. Once you've gotten to this point, what I have been doing in my re-study is select the answer that seems most right to me, and then go through the other 3 and determine exactly why those other 3 are wrong – explain to yourself why that audit procedure would NOT apply to those procedures. Most of the time the one that jumps out ends up being correct, but you have to confirm why the other 3 are wrong to know you're right. You have to really think about what the auditor is doing and why or how that procedure would concern whatever assertion it is pertaining to. So I guess I'm saying if you really break down the question, logic can sometimes lead you to the right answer.

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[monikernc]

here is a post that may help, many others if you search assertions up top

https://www.another71.com/cpa-exam-forum/topic.php?id=assertion-acronyms

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[sar_rah]

Completeness–Is it recorded in the financial statements?

Yes tracing is the most popular test for completeness.

Cutoff procedures also test for completeness though. Think about what you're doing with cutoff procedures. Making sure that everything thats supposed to be recorded in this period is actually recorded. Essentially, cutoff procedures tell you 2 things at once. That a) your inventory purchases relate to the period in which they were purchased and b) that they're actually recorded in the financial statements

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[Author]

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