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The following are various management assertions (a through m) related to sales and accounts receivable.
Management
Assertion
a. All sales transactions have been recorded.
b. Receivables are appropriately classified as to trade and other receivables in the financial statements and are clearly described.
c. Accounts receivable
are recorded at the correct amounts.
d. Sales transactions have been recorded in the proper period.
e. Sales transactions have been recorded in the appropriate accounts.
f. All required disclosures about sales and receivables have been made.
g. All accounts receivable
have been recorded.
h. There are no liens or other restrictions on accounts receivable.
i. Disclosures related to receivables are at the correct amounts.
j. Recorded sales transactions have occurred.
k. Recorded accounts receivable exist.
l. Sales transactions have been recorded at the correct amounts.
m. Disclosures related to sales and receivables relate to the entity.
Required
a. Explain the differences among management assertions about classes of transactions and events, management assertions about account balances, and management assertions about presentation and disclosure.
b. For each assertion, indicate whether it is an assertion about classes of transactions and events, an assertion about account balances, or an assertion about presentation and disclosure.
c. Indicate the name of the assertion made by management.
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