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P1: Compare revenue against prior year and investigate any significant fluctuations: cut-off, occurrence, accuracy and completeness.
P2: Compare the list of trade receivables against the prior year list to identify any significant omissions: completeness. (Analytical procedure)
2 same procedures maam but still widely different assertions, except for completeness(which i understand tests understatement-unrecorded amounts).
how does P1 tests accuracy, cut-off, occurrence(existence instead of occurrence for TRs) in case of revenue but not in case of TRs?
Per CHAPTER 16:
s2. Assertions about classes of transactions and events and related disclosures are for the period
s3. Assertions about account balances and related disclosures relate to the period end
“Learn the assertions” at the bottom of the page – assertions are NOT ALL THE SAME.
Sales and purchases are examples of classes of transactions.
Receivables and payables are examples of account balances.