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    Hazraphine Linso
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    This document lists 9 errors affecting the financial statements of various supermarkets. The errors include unrecorded or incorrectly recorded sales transactions, which impact accounts such as sales, cost of goods sold, gross profit, and receivables. The errors lead to financial statements that are misstated in terms of completeness, classification, occurrence, accuracy, and cut-off.

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    This document lists 9 errors affecting the financial statements of various supermarkets. The errors include unrecorded or incorrectly recorded sales transactions, which impact accounts such as sales, cost of goods sold, gross profit, and receivables. The errors lead to financial statements that are misstated in terms of completeness, classification, occurrence, accuracy, and cut-off.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    16 views2 pages

    Errors

    Uploaded by

    Hazraphine Linso
    This document lists 9 errors affecting the financial statements of various supermarkets. The errors include unrecorded or incorrectly recorded sales transactions, which impact accounts such as sales, cost of goods sold, gross profit, and receivables. The errors lead to financial statements that are misstated in terms of completeness, classification, occurrence, accuracy, and cut-off.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 2

    No.

    Description of error Account(s) affected Effect on Financial Assertion(s)


    Statement Compromised
    Ex The sales of Red Sales and Accounts Sales, Cost of Goods Completeness
    1 Supermarket with sales Receivable upon Sales. Sold, Gross Profit, Net
    order number XXX was not And Cash and Accounts Income and Accounts
    recorded in the general Receivable upon Cash Receivable are
    ledger. Collection understated.
    Ex The sales of Blue Sales and Office Sales, Gross Profit, and Classification
    2 Supermarket on December Supplies Expense Office Supplies expense
    5th with sales order number are understated.
    YYY was recorded in the
    Office Supplies account by
    mistake.
    1 North The sales of North Sales and Accounts Sales, Cost of Goods Occurrence
    Supermarket Supermarket on December Receivable Sold, Gross Profit, Net
    20 with sales order number Income and Accounts
    201512947 that recorded in Receivable are
    General ledger did not overstated.
    really exist.
    2 East The sales of East Sales and Payroll-Salary Sales, Gross Profit and Classification
    Supermarket Supermarket with sales and Wages Payroll-Salary and
    order number 201512917 Wages account are
    was not recorded in the understated.
    Sales accounts instead it
    was recorded in the Payroll-
    Salary and Wages account
    by mistake.
    3 East The sales of East Sales and Accounts Sales, Cost of Goods Accuracy
    Supermarket Supermarket with sales Receivable upon Sales Sold, Gross Profit, Net
    order number 201512917 Income and Accounts
    with item no. 7009 was Receivable are
    inputted wrong unit price. understated.
    4 East The sales of East Sales and Accounts Sales, Cost of Goods Cut-off
    Supermarket Supermarket with sales Receivable upon Sales; Sold, Gross Profit, Net
    order number 201601963 and Cash and Accounts Income and Accounts
    was erroneously recorded Receivable upon Cash Receivable are
    at Dec. 2015 general ledger. Collection. overstated.
    The sales is actually for
    January 2016.
    5 Big The sales of Big Sales and Accounts Sales, Cost of Goods Cut-off
    Supermarket Supermarket on December Receivable upon Sales Sold, Gross Profit, Net
    26 with sales order number Income and Accounts
    201601951 was actually Receivable are
    sales on January 2016 but overstated.
    recorded in December 2015
    general ledger.
    6 Near The sales of Near Sales and Accounts Sales, Cost of Goods Completeness
    Supermarket Supermarket with sales Receivable upon Sales. Sold, Gross Profit, Net
    order number 201512937 And Cash and Accounts Income and Accounts
    was not recorded in the Receivable upon Cash Receivable are
    general ledger. Collection understated.
    7 Far The sales of Far Sales and Rent expense Sales, Gross profit, Rent Classification
    Supermarket Supermarket with sales expense are
    order number 201512940 understated.
    was recorded in the Rent
    Expense account by
    mistake.
    8 Blue The sales of Blue Sales and Accounts Sales, Cost of Goods Occurrence
    Supermarket Supermarket with sales Receivable Sold, Gross Profit, Net
    order number 201512950 Income and Accounts
    did not really exist. Receivable are
    overstated.
    9 Red The sales of Red Sales and Accounts Sales, Cost of Goods Completeness
    Supermarket Supermarket with sales Receivable upon Sales. Sold, Gross Profit, Net
    order number 201512949 And Cash and Accounts Income and Accounts
    was not recorded in the Receivable upon Cash Receivable are
    general ledger. Collection understated.

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