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For Each of the Following Substantive Tests of Balances, Indicate

Question 92

Matching

For each of the following substantive tests of balances, indicate the financial statement assertions, Answers may be used once, more than once, or not at all.

Premises:

Responses:

Perform analytical procedures on investment balances.

EO ─ Existence or Occurrence

Recalculate investment revenue earned.

VA ─ Valuation or Allocation

Inspect and count securities on hand.

C ─ Completeness

Vouch entries in investment accounts.

RO ─ Rights and Obligations

Confirm securities held by others.

PD ─ Presentation and Disclosure

Perform cash cutoff tests.

EO, C and VA

Count undeposited cash on hand and determine that such amounts are included in cash balances.

EO, VA, C, and PD

Confirm bank deposit and loan balances with banks.

EO, VA and RO

Confirm other arrangements with banks.

EO, C and RO

Scan, review, or prepare bank reconciliations as appropriate.

EO, VA, C, RO, and PD

EO, VA, C and RO

Premises:

Perform analytical procedures on investment balances.

Recalculate investment revenue earned.

Inspect and count securities on hand.

Vouch entries in investment accounts.

Confirm securities held by others.

Perform cash cutoff tests.

Count undeposited cash on hand and determine that such amounts are included in cash balances.

Confirm bank deposit and loan balances with banks.

Confirm other arrangements with banks.

Scan, review, or prepare bank reconciliations as appropriate.

Responses:

EO ─ Existence or Occurrence

VA ─ Valuation or Allocation

C ─ Completeness

RO ─ Rights and Obligations

PD ─ Presentation and Disclosure

EO, C and VA

EO, VA, C, and PD

EO, VA and RO

EO, C and RO

EO, VA, C, RO, and PD

EO, VA, C and RO

Correct Answer:

Premises:

Responses:

EO ─ Existence or Occurrence

VA ─ Valuation or Allocation

C ─ Completeness

RO ─ Rights and Obligations

PD ─ Presentation and Disclosure

EO, C and VA

EO, VA, C, and PD

EO, VA and RO

EO, C and RO

EO, VA, C, RO, and PD

EO, VA, C and RO

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Q86: Consider the following financial statement assertions:
-Perform cash

Q87: Consider the following financial statement assertions:
-Confirm other

Q88: Consider the following financial statement assertions:
-Count undeposited

Q89: Consider the following financial statement assertions:
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Q90: Consider the following financial statement assertions:
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Q91: Consider the following financial statement assertions:
-Scan, review,

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