Transaction-Related Audit Objectives

Occurrence

The transactions in the journal actually took place.

“Did it occur?”

Completeness

No transaction that took place was left out of the journals, and no required disclosure is missing.

“Did everything that happened get recorded?”

Accuracy

Each recorded transaction carries the right dollar amount and the related disclosures get the numbers right.

“Is it the right dollar amount?”

Posting and Summarization

Transactions flow correctly from the journals into the subsidiary records and the general ledger, and the totals add up.

“Were the transactions carried correctly into the subledgers and totals?”

Classification

Each transaction is recorded in the correct account.

“Is it the right account?”

Timing

Each transaction is recorded in the period, and on the date, it took place.

“Is it listed under the right date?”

Presentation

Transactions are combined or broken out in a sensible way and described clearly, and the related disclosures help a reader follow them.

“Is it grouped and described so a reader understands it?”

What tests does the auditor perform for any transaction-related audit objective?

test of controls and substantive tests of transactions