6-30 (ObjeCtives 6-8, 6-10) The following are specific balance-related audit objectives applied to the

audit of accounts receivable (a. through h.) and management assertions about account balances (1
through 4). The list referred to in the specific balance-related audit objectives is the list of the
accounts receivable from each customer at the balance sheet date.

Specific Balance-related audit Objective

a. There are no unrecorded receivables.
b. Uncollectible accounts have been provided for.
c. Receivables that have become uncollectible have been written off.
d. All accounts on the list are expected to be collected within one year.
e. The total of the amounts on the accounts receivable listing agrees with the general ledger balance
for accounts receivable.
f. All accounts on the list arose from the normal course of business and are not due from related
parties.
g. Sales cutoff at year-end is proper.
h. Receivables have not been sold or discounted.

Management assertion about account Balances

1. Existence
2. Completeness
3. Valuation and allocation
4. Rights and obligations

Required
For each specific balance-related audit objective, identify the appropriate management assertion.
(Hint: See Table 6-5 on p. 165.)
Jawaban 6-30

SPECIFIC BALANCE-
RELATED AUDIT MANAGEMENT
OBJECTIVE ASSERTION COMMENTS

a. There are no 2. Completeness Unrecorded transactions or amounts

unrecorded deal with the completeness
receivables. objective.

b. Uncollectible accounts 3. Valuation or Providing for uncollectible accounts

have been provided allocation concerns whether the allowance for
for. uncollectible accounts is adequate.
It is part of the realizable value
objective and the valuation or
allocation assertion.

c. Receivables that have 3. Valuation or This is part of the realizable value

become uncollectible allocation objective and the valuation or
have been written off. allocation assertion. There may also
be some argument that this is part
of the existence objective and
assertion. Accounts that are
uncollectible are no longer valid
assets.

d. All accounts on the 3. Valuation or Accounts that are not expected to

list are expected to be allocation be collected within a year should be
collected within one classified as long-term receivables.
year. It is therefore included as part of
the classification objective and
consequently under the valuation or
allocation assertion.

e. The total of the 3. Valuation or This is part of the detail tie-in

amounts on the allocation objective and is part of the
accounts receivable valuation or allocation assertion.
listing agrees with the
general ledger
balance for accounts
receivable.
6-30 (continued)

SPECIFIC BALANCE-
RELATED AUDIT MANAGEMENT
OBJECTIVE ASSERTION COMMENTS

f. All accounts on the 3. Valuation or Concerns the classification of

list arose from the allocation accounts receivable and is therefore
normal course of a part of the classification objective
business and are not and the valuation or allocation
due from related assertion.
parties.

g. Sales cutoff at year- 3. Valuation or Cutoff is a part of the cutoff

end is proper. allocation objective and therefore part of the
valuation or allocation assertion.

h. Receivables have not 4. Rights and Receivables not being sold or

been sold or obligations discounted concerns the rights and
discounted. obligations objective and assertion.
6-31 (ObjeCtives 6-8, 6-9) The following are specific transaction-related audit objectives applied to
the audit of cash disbursement transactions (a. through f.), management assertions about classes of
transactions (1 through 5), and general transaction-related audit objectives (6 through 11).

Specific transaction-related audit Objective

a. Existing cash disbursement transactions are recorded.
b. Recorded cash disbursement transactions are for the amount of goods or services received and are
correctly recorded.
c. Cash disbursement transactions are properly included in the accounts payable master file and are
correctly summarized.
d. Recorded cash disbursements are for goods and services actually received.
e. Cash disbursement transactions are properly classified.
f. Cash disbursement transactions are recorded on the correct dates.

Management Assertion About General Transcation-Related

Classes of transactions Audit Objective
1. Occurrence 6. Occurance
2. Completeness 7. Completeness
3. Accuracy 8. Accuracy
4. Classification 9. Posting and summarization
5. Cutoff 10. Classification
11. Timing

Required
a. Explain the differences among management assertions about classes of transactions and events,
general transaction-related audit objectives, and specific transactionrelated audit objectives and their
relationships to each other.
b. For each specific transaction-related audit objective, identify the appropriate management
assertion.
c. For each specific transaction-related audit objective, identify the appropriate general transaction-
related audit objective.
Jawaban 6.31

a. Management assertions are implied or expressed representations by management about the classes
of transactions and related accounts in the financial statements. AU 326 identifies five assertions
about classes of transactions which are stated in the problem. These assertions are the same for
every transaction cycle and account. General transaction-related audit objectives are essentially
the same as management assertions, but they are expanded somewhat to help the auditor decide
which audit evidence is necessary to satisfy the management assertions. Accuracy and posting and
summarization are a subset of the accuracy assertion. Specific transaction-related audit
objectives are determined by the auditor for each general transaction-related audit objective.
These are done for each transaction cycle to help the auditor determine the specific amount of
evidence needed for that cycle to satisfy the general transaction-related audit objectives.

c.
b.
GENERAL
SPECIFIC TRANSACTION-RELATED AUDIT MANAGEMENT
TRANSACTION-
OBJECTIVE ASSERTION
RELATED AUDIT
OBJECTIVE

b. Recorded cash disbursement 3. Accuracy 8. Accuracy

transactions are for the amount of
goods or services received and are
correctly recorded.

c. Cash disbursement transactions are 3. Accuracy 9. Posting and

properly included in the accounts summarization
payable master file and are
correctly summarized.

d. Recorded cash disbursements are for 1. Occurrence 6. Occurrence

goods and services actually
received.

e. Cash disbursement transactions are 4. Classification 10. Classification

properly classified.

a. Existing cash disbursement 2. Completeness 7. Completeness

transactions are recorded.

f. Cash disbursement transactions are 5. Cutoff 11. Timing

recorded on the correct dates.
Perbedaan
1. Manajemen Assertions about Classes of transactions and events

2. General transaction-related audit objectives / tujuan audit terkait transaksi umum

3. Specific transactionrelated audit objectives / tujuan audit terkait transaksi spesifik

4. their relationships to each other / hubungan 1 sama lainnya.

c.
b.
GENERAL
SPECIFIC TRANSACTION-RELATED AUDIT MANAGEMENT TRANSACTION-
OBJECTIVE ASSERTION
RELATED AUDIT
OBJECTIVE

a. Existing cash disbursement 2. Completeness 7. Completeness

transactions are recorded.

b. Recorded cash disbursement 3. Accuracy 8. Accuracy

transactions are for the amount of goods
or services received and are correctly
recorded.

c. Cash disbursement transactions are 3. Accuracy 9. Posting and

properly included in the accounts summarization
payable master file and are correctly
summarized.

d. Recorded cash disbursements are for 1. Occurrence 6. Occurrence

goods and services actually received.

e. Cash disbursement transactions are 4. Classification 10. Classification

properly classified.

f. Cash disbursement transactions are 5. Cutoff 11. Timing

recorded on the correct dates.