Reference no: EM132784160

Question - For each of following specific audit procedures (A to F) state the specific audit assertion associated with the audit procedure. Be sure to include the type, i.e. whether it is a transaction-related, balance-related or presentation & disclosure-related audit assertion.

For each specific audit assertion identified, state the General Audit Assertion and Explain why. Organize your answer in two columns as follows:

Specific audit assertion and type

General Audit Assertion with reason

A. Obtained a client prepared bank reconciliation and agreed the outstanding deposits to the bank statement of the following month.

B. Externally confirmed the terms and balances of bonds payable with creditors

C. Calculated an estimated total managerial payroll expense by multiplying the average salary by the number of managers. Compared the estimated payroll expense with actual expense and inquired with payroll manager to obtain the cause for the 30% variance.

D. Recalculated depreciation expense related to property, plant, and equipment.

E. Inspected accounts receivable aged trial balance to identify balances greater than 90 days old and traced the amounts to subsequent payments made by customer.

F. Discussed significant fluctuation in repairs and maintenance account with client management.