(c) Assertions – receivables
Assertion
Existence Rights and obligations that the amount is owed to Valuation and allocation Cut-off
Application to direct confirmation of receivables
The receivable actually exists which is confirmed by the receivable replying to the receivables confirmation.
The receivable belongs to Seeley Co. The receivable confirms Seeley again by replying to the confirmation. Receivables are included in the financial statements at the correct amount – the receivable will dispute any amounts that do not relate to that account. Transactions and events have been recorded in the correct accounting period. The circularisation will identify reconciling items such as sales invoices/cash in transit.
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