Occurence and Completeness

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  • Avatar of Smartperson
    Smartperson
    Participant
    • Topics: 3
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    Why it is so that tracing purchase invoice to PDB relates to Occurrence.
    and
    Agreeing Purchase day book to non current asset register is Completeness?

    Basically i know what completeness and occurrence are but having problem with this.


    Avatar of gromit
    gromit
    Keymaster
    • Topics: 1
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    Well, some assertions can be tested simultaneously and are anyhow linked. If there is a new non-current asset bought, the flow of accounting information would be invoice to pdb to ledger. If that link is tested then you are gaining assurance that the acquisition occurred, that it has been completely posted (and also that the cost recorded in the non-current asset ledger is accurate and, after depreciation, is correctly valued.


    Avatar of Smartperson
    Smartperson
    Participant
    • Topics: 3
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    So for occurrence u have to check the flow to assure that it occurred.
    Is that same for sales.
    invoice to sales day book (occurrence)
    sale day book to dispatch note (completeness)

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