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hrithikzgirl83
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Joined: 27 Apr 2008
Location: United States
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Posts: 69

Posted: 26 May 2008 at 13:51 \| IP Logged

I'm having a hard time all the different assertions. Is there an easy way to remember them? I'm getting so many MCs wrong because I get confused between assertions. Thanks!

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shinggy
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Joined: 24 Nov 2007
Location: Hong Kong
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Posted: 28 May 2008 at 04:20 \| IP Logged

The most common ones are existence and completeness

Let's break a sales transaction into 3 parts

Invoice or order - process - journal entries

If you "trace" (keyword) from process to journal entries, then you are trying to ensure completeness, as j/e is always the ending point

If you "vouch" (another keyword) from process to invoice, then you are ensuring the existence of the order, as you always receive an order, then you'll start to process (pack things up and ship them or kinda stuff)

Accuracy - you can define it by itself

Valuation - is the method to evaluate the stuff right? For example, use market value to value short-term investments

Objectivity - you can define it

Presentation and disclosure - Are you putting the numbers right? For example, a long-term debt with repayment of the principle a little each year should be break into 2 portions, one is the amount to be paid within 1 year as ST liab, and the remaining as LT liab, you cannot just put them in LT liab

I wish that helps... tomorrow is my AUD exam... good luck to me and everyone here

shoebhashim
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Joined: 10 Sep 2007
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Posts: 32

Posted: 28 May 2008 at 12:32 \| IP Logged

Yes, you've got to memorize that chart in Becker (A4(B):34). Coming up with your own acronym helps a lot. I used my own CRAZY one, if it helps (below):

Cp ==> TAO

Ar ==> IF

Cf & Ro ==> I

Pc ==> Cp

Av ==> RR

Or ==> V

Ex ==> VOICE

Uc ==> RM

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[BEC -- Done] | [REG -- Done] | [AUD -- Done | [FAR -- Aug, 2009]

shoebhashim
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Joined: 10 Sep 2007
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Posted: 28 May 2008 at 12:37 \| IP Logged

Also, look at the Class Notes in Becker Passmaster. It helps remember those Catagories of Assertions:

Transactions & Events (CPACO)

Account Balances (CARE)

Presntation & Disclosure (CRUV)

Along with the above, like I said earlier, you must memorize the Audit Procedures realted to each Assertion & you're done. Best of Luck!

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[BEC -- Done] | [REG -- Done] | [AUD -- Done | [FAR -- Aug, 2009]

spaztikenigma
Regular
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Joined: 08 Aug 2008
Location: United States
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Posts: 100

Posted: 14 Aug 2008 at 13:05 \| IP Logged

Has "Classification and Understandability" replaced "Presentation and Disclosure" as a management assertion on the AUD exam?

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