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The following issues were discovered by the audit team while performing the audit of Matador...

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Question

Accounting

The following issues were discovered by the audit team while performing the audit of Matador Corporation. Consider each issue independently., Identify the assertion that best pertains to that issue. Use the format given below.

1. Matador recorded service revenue, but there is no evidence any service work was performed.

2. The fair value for financial instruments (i.e., investments) reported on the balance sheet differs significantly from the audit teams own determination of the investments fair value.

3. In December, Matador purchased some raw materials to be used in its manufacturing process. The raw materials arrived in their warehouse on December 30th. However, Matador didnt record the raw materials in its inventory accounts until January 2nd (December is the end of Matadors fiscal year).

Issue

Assertion

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