Dean Westby

University of Belize
Audit and Assurance
Semester 1- August 2022

ASSIGNMENT # 1 – MANAGEMENT ASSERTIONS

PART 1

FOR THE FOLLOWING MANAGEMENT ASSERTIONS, A- IDENTIFY WHICH

CATEGORY AND B- THE NAME OF SPECIFIC ASSERTION
( For reference see Power Point 6-22, 14 ed) : 5 x 10 points = 50 points

1. Sales transactions have been recorded in the proper period

Category of management: Classes of transactions.

Name of assertion: Cut off.

2. Sales transactions have been recorded in the appropriate accounts

Category of management: Classes of transactions.

Name of assertion: Classification.

3. All sales transactions have been recorded

Category of management: Classes of transactions.

Name of assertion: Completeness.

4. Receivables are appropriately classified as to trade and other receivables in the financial
statements and are clearly described

Category of management: Presentation and disclosure

Name of assertion: Classification and understandability

5. All required disclosures about sales and receivables have been made

Category of management: Presentation and disclosure.

Name of assertion: Completeness.

Dean Westby
University of Belize
Audit and Assurance
Semester 1- August 2022

PART 2

FOR THE FOLLOWING AUDIT PROCEDURES , A- IDENTIFY WHETHER EACH

RELATE TO BALANCE RELATED AUDIT OBJECTIVE OR TRANSACTION
RELATED AUDIT OBJECTIVE AND B- THE NAME OF SPECIFIC AUDIT
OBJECTIVE : 5 x 10 points = 50 points

1. For a sample of sales transactions selected from the sales journal, verify that the amount
of the transaction has been recorded in the correct customer account in the accounts
receivable subledger.

ANS: Transaction related objective; Posting and Summarization

2. Inquire of the client whether any accounts receivable balances have been pledged as
collateral on long-term debt and determine whether all required information is included in
the footnote description for long-term debt

ANS: Balance related objective; Rights and Obligations

3. Discuss with credit department personnel the likelihood of collection of all accounts as of
December 31, 2019, with a balance greater than $100,000 and greater than 90 days old as
of year-end.

ANS: Balance related objective; Realizable Value

4. Examine sales invoices for the last five sales transactions recorded in the sales journal in
2019 and examine shipping documents to determine they are recorded in the correct
period.

ANS: Balance related objective; Cutoff

5. Use audit software to total sales in the sales journal for the month of July and trace
postings to the general ledger.

ANS: Transaction related objective; Posting and Summarization