Auditing(Control activities and related assertions) Essay

Auditing(Control activities and related assertions) - Essay ExampleType of hold up is C (physical controls). This is because the control pertains to cash, which is vulnerable to loss or theft.. This is one of the physical controls that can be utilized to secure the cash of the company.The assertion here is humanity because this verifies the physical existence of the cash as of the date of the count. It also pertains to the completeness assertion as it promises that the amount of cash counted is completely recorded in the cash register.This is a B (segregation of duties) grapheme of control because it separates the person responsible for approval of overtime work from the employees who will do the overtime. This can also be an A 2 (application control input) because it ensures that the inputs to the placement (overtime work) have been duly-approved by a higher authority prior to their entry in the data system.This is an A 2 (application control output) control because it veri fies the accuracy of the voucher which was generated by the system. It may also be a B (segregation of duties) type of control because another person is responsible for reviewing the document and the transaction.The assertions addressed here ar existence, occurrence and accuracy because the review of the voucher ensures that the liability actually exists or the expenses are actually incurred since it will entail checking against source documents or files and that the amount in the voucher is proper or correct.The assertions addressed here are existence and occurrence as maintaining the integrity of the records through restricting access will ensure that the transactions with employees (which affect cash, liability and expenses) are valid and existing.This is a B (segregation of duties) control because a person of higher authority reviews the results of the input of those responsible for qualification the entries. It may also be an A 2 (application control processing) control bec ause it checks the classification of the accounts