Consider the following substantive procedures. For each substantive procedure, select the assertion(s) for which the substantive procedure is designed to detect misstatements. You may use an assertion below more than once. a. Inspect activity in all long-term debt and related income statement accounts and investigate entries that appear unusual in amount or source. Existence and completeness of long-term debt. b. Confirm equity transactions with the company's registrar or transfer agent. C. All equity assertions. Inspect authorizations and terms of stock issues. Occurrence, completeness, accuracy, cutoff, and classification of equity. e. Scan the cash receipts journal for large, unusual cash receipts. g. Calculate appropriate equity ratios. options: Occurrence, accuracy, cutoff, and classification debt. Existence.completeness. and valuation and allocation of equity. All equity assertions. Completeness of long-term debt. Existence and completeness of long-term debt. Existence, completeness, and valuation and allocation of equity. Occurrence, accuracy, cutoff, and classification debt. Occurrence, completeness, accuracy, cutoff, and classification of equity. Occurrence, accuracy, and cutoff of debt transactions. Occurrence and rights and obligations for debt.
Consider the following substantive procedures. For each substantive procedure, select the assertion(s) for which the substantive procedure is designed to detect misstatements. You may use an assertion below more than once. a. Inspect activity in all long-term debt and related income statement accounts and investigate entries that appear unusual in amount or source. Existence and completeness of long-term debt. b. Confirm equity transactions with the company's registrar or transfer agent. C. All equity assertions. Inspect authorizations and terms of stock issues. Occurrence, completeness, accuracy, cutoff, and classification of equity. e. Scan the cash receipts journal for large, unusual cash receipts. g. Calculate appropriate equity ratios. options: Occurrence, accuracy, cutoff, and classification debt. Existence.completeness. and valuation and allocation of equity. All equity assertions. Completeness of long-term debt. Existence and completeness of long-term debt. Existence, completeness, and valuation and allocation of equity. Occurrence, accuracy, cutoff, and classification debt. Occurrence, completeness, accuracy, cutoff, and classification of equity. Occurrence, accuracy, and cutoff of debt transactions. Occurrence and rights and obligations for debt.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Consider the following substantive procedures. For each substantive procedure, select the assertion(s) for which the substantive
procedure is designed to detect misstatements. You may use an assertion below more than once.
a. Inspect activity in all long-term debt and related
income statement accounts and investigate
entries that appear unusual in amount or source.
Existence and completeness of long-term debt.
b.
Confirm equity transactions with the company's
registrar or transfer agent.
C.
All equity assertions.
Inspect authorizations and terms of stock issues.
Occurrence, completeness, accuracy, cutoff, and classification of equity.
e.
Scan the cash receipts journal for large, unusual
cash receipts.
g.
Calculate appropriate equity ratios.
options:
Occurrence, accuracy, cutoff, and classification debt.
Existence.completeness. and valuation and allocation of equity.
All equity assertions.
Completeness of long-term debt.
Existence and completeness of long-term debt.
Existence, completeness, and valuation and allocation of equity.
Occurrence, accuracy, cutoff, and classification debt.
Occurrence, completeness, accuracy, cutoff, and classification of equity.
Occurrence, accuracy, and cutoff of debt transactions.
Occurrence and rights and obligations for debt.
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