I have seen questions here and there regarding assertions on my practice exam and the real thing, here's how I memorize them.
What helps is if you can use the examples in the questions or just read them over and over until you make sense out of it.
For ex.
– we test the completeness of liabilities to check for understatement of obligations, in English, we want to make sure the entity isn't leaving out obligations that it owes and trying to avoid recording them.
– existence of inventory – we want to make sure inventory that is shown on the inventory detail listing actually exists (we can see it) and to test it, we perform inventory counts/observations to physically view the inventory
– cutoff – think “timing”, “when should this transaction be recorded?”, assuming the entity follows full accrual accounting, we know that expenses should be recorded when incurred, revenue should be recognized when earned
I just use really simple examples like those above to really try to understand what is going on and why these procedures are performed.
AUD - 77
BEC - 77
FAR - 75
REG - 82
Licensed CPA practicing in
California.
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The feeling you get when you see that last score, is like no other.