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December 4, 2021 at 9:03 pm
Hi, Question one referes to a payment being made for $3,000 on 28 October for expenses relatng to November to January. Would this not be recognised at October month end as a prepayment for the full $3,000?
December 4, 2021 at 9:18 pm
My mistake as the audit will be assessing the prepayments at year end.
Kim Smith says
December 5, 2021 at 8:49 am
You got it!
January 19, 2021 at 1:52 pm
See page 86 of the notes in the section “Learn the assertions” – existence certainly relates to any balance – cut-off is an assertion about transactions.
January 19, 2021 at 12:40 pm
For question #4 the answer states: “Cut-off” is an assertion about classes of transactions”…isn’t that the “classification” assertion instead? I believe the correct answer is “Existence” not relating to prepayment/accrual assertions?
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