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. Indicate the most applicable Assertion for each of the Items shown below [in the form of an assertion]. Use only ONE letter for each item.

Assertions about Classes of Transactions and Events and Related Disclosures, for the period under audit:

A. Occurrence

B. Completeness

C. Accuracy

D. Cutoff

E. Classification OR Presentation

Assertions about Account Balances and Related Disclosures, at the period end.

G. Existence

H. Rights and Obligations

I. Completeness

J. Accuracy, Valuation and Allocation

K. Classification OR Presentation

Assertions:

1. Items in the companys warehouse can be found on the inventory listing.

2. The company actually owns inventory found in its warehouse. 3. Purchases in transit at year-end shipped FOB destination are properly excluded in the companys accounts.

4. Recorded sales actually took place.

5. Liabilities due in six months follow the accounting rules and are shown on the companys balance sheet as long term liabilities.

6. The auditor counts 99 units of an item of inventory, the inventory listing shows 100. [Do not select Existence]

7. Land owned by the company is shown on the Balance Sheet at Historic [original] Cost.

8. Sales that took place, were recorded.

Part 2 II. Answers (USE ONLY ONE LETTER)

1. ____ 2. ____ 3. ____ 4. ____

5. ____ 6. ____ 7. ____ 8. ____

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