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Ma’am I understand that for occurrence and completeness assertion, order matters.
But I wanted to know if this holds true for occurrence assertion also?
For eg here- “for salaries agree totally net pay per payroll records to bank transfer listing payments and to cash book to test occurrence”
So here the order will matter? Or it can be either way?
Humble apologies for bothering you so much. Just bare with me Ma’am for only two more weeks.
I’m not sure what you mean by “order matters” – if you mean in terms of agreeing this to that and then that to other – this may matter in some cases (e.g. see you TP post you can’t agree a payables balance to a GRN, then an invoice – it has to be to invoice first, then GRN).
But order won’t matter where the same amounts are recorded independently – so, for example, agreeing a specified $ amount to the cash book (internal record) and to bank statement (external record of the same $ amount) – clearly order is unimportant.
If, however, you were looking at a recording of a cash receipt in the cash book of $300, say …. a company does not bank each cash receipt individually, it will be the receipts for the day, say $1,900 that will be banked. In this case it will be necessary to agree the receipt first to the cash book and then to the bank statement.
LOOK at the “flow” diagrams in Chapter 13 – they are not complete but they are mean to assist. Cash receipt/payment is the “end” (settlement) of transactions – so it makes most sense when describing whether the transaction occurred to have the cash bit at the end.
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