Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin. Chapter 08. Acquisition and Expenditure Cycle
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Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Acquisition and Expenditure Cycle
“Show those numbers to the damn auditors and I'll throw you out the $%*@@ window.”----(Buddy Yates, director of WorldCom, Inc. general accounting, to an employee asking for an explanation of a large accounting discrepancy).
See Exhibit 8.2 for assertion risks
Cost and Expense Capers
Assertions about Classes of Transactions and Events for the Period: Acquisition and Expenditure Cycle
Direction of Tests
Exhibit 8.6 Assertions about account balances at the period end and substantive procedures: Acquisition and Expenditure Cycle
Sample PP&E and Depreciation Documentation