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HCBC
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Posted: 28 Mar 2009 at 11:14 \| IP Logged

I have read and studied that if an auditor finds that receivables are pledged that they are of the "Presentation and Disclosure" assertions. I just can't find which one (CURV). I just know I'll end up with this question on the test and they'll list several of them and now know exactly which one to use? Any help?

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amii
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Posted: 28 Mar 2009 at 11:36 \| IP Logged

If receivable r pledged thts relate to presentation & discosure bcoz
pledged receivable need to be Disclosed by the client properly. &auditor
will look for the same

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HCBC
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Posted: 28 Mar 2009 at 11:46 \| IP Logged

Amii,

Thanks for the reply. I understand that it is "presentation" but through becker i have learned that presentation assertions are:
Completeness
Understandability/Classification
Rights/Obligations
Valuation/Accuracy

I was wondering if i may get stuck with a questions that yes i know its presentation but which assertion specifically? by looking at your answer i would assume that its understandability/classification

__________________
BEC 04/04/08   78
FAR 07/12/08   83
REG 11/06/08   88
AUD 02/06/08   73...
Again 04/10/09 91
Becker only (now with gleim!)
And a Text Book!!!
Colorado

may09
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Posted: 28 Mar 2009 at 13:47 \| IP Logged

Yes, you are both right. It is understandability /classification. I just came across an AICPA released simulation (2005) on Becker which does say this as the explanation to one of the answers.It says

"Obtaining confirmation from lenders regarding inventories pledged under loan agreements provides evidence about classification and understandability, not about valuation."

So I guess the same holds good for receivables too..

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shyama
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Posted: 28 Mar 2009 at 15:29 \| IP Logged

Got this answer frm Gliem CD.Hope this helps.

According to AU326 assertions about presentation and disclosure deal with whether particular components of the financial statement are properly classified,described and disclosed.Determining tht the pledge or assignment is properly disclosed is an audit objective related to the classification and understandability assertion.

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