 process within the prepayment process and therefore when we audit the prepayment cycle, we should be auditing the prepaid expenses as well. The same kind of controls that are going to be in place, so this is another area of course. As we construct the audit process, there will be overlap when we consider these different types of accounts. We need to consider where that overlap will be so that we can do the enough testing that we need, but a minimal amount of testing in order to make the audit process efficient. Then we have the substantive procedures. We're going to say related to prepaid insurance in this case, so we have the substantive procedures, we have the inherent risk, the detection risk, then we have the inherent risk and the control risk, then setting the detection risk, then considering the substantive procedures, the actual testing items that we would be doing within the audit. Test of details of prepaid insurance accounts. Step one is to get a schedule of the prepaid assurance account. So obviously we're going to need a schedule. We're going to not want to know when the payments are going to be made. We're probably also going to need the policy. So those are the two things we're typically going to need if we get the GL account or the trial balance. If we get the trial balance, we're going to look at prepaid. We're going to say we need the GL account now. Most of the time, the company will be posting their payments to the GL account of prepaid insurance. Then they should be, if they're a publicly traded company, doing the month end reconciliation, and then we should just have to basically review that. So if you have questions about that, you want to go to financial accounting, think about the year end adjusting entry. If you're talking about publicly traded companies, they should have completed the adjusting entry, which means they would be posting their items when they make the payment to insurance to prepaid expenses and asset, not a liability. Then at the end of a time period, typically a month, they would make the adjustment to adjust the amount that has expired and the amount that has not been expired, the amount that remains in prepaid expense, the amount that is not. Now, if you're auditing a very small company or doing a review or a compilation or something like that, quite possible that they didn't do the period in adjustment. And you may actually have to look at that period in adjustment, which is basically just an adjusting entry, or it could be possible that instead of posting the transactions to prepaid insurance, they're posting it to a prepaid to insurance expense. And in that case, of course, you would just basically do the reverse of the adjusting entry. Instead of adjusting it out of prepaid insurance, you would be saying, okay, now prepaid expenses overstated, you'd have to reduce that. Again, publicly traded company, that adjusting entry you would think had been taken place, and we just need to basically test to see if it was done properly. Assertions related to prepaid insurance includes valuation, calculate portion of the policy that is not expired and portion that is. So with regard to valuation, we're going to get the policy, we're going to say, okay, how much time period does this policy cover? And then we're going to consider how much of the policy has expired and how much of the policy has not been expired. So the assumption here, we have the policy policy has been paid for, we can see that the policy has been paid for, then we consider the policy that has been paid for, how much of it has expired, how much of it has not expired, the amount that has not expired then should be still reported as prepaid insurance, the amount that has expired should be expense rights and obligations, confirm policy beneficiary. So we want to make sure that we know who the beneficiary is of the policy, inquire the insurance broker. So it's useful to be able to talk to the insurance broker because the insurance broker is outside of the organization. So it gives us a little bit more confirmation or assurance, a little bit better evidence that we can compile to give us assurance about prepaid insurance, existence and completeness. So with the assertion of existence and completeness, confirm policy with the insurance broker. So again, we could talk to the insurance broker about that outside of the company, bit more assurance, examine supporting source documents, so we can consider the source documents as well. And then we have classification. So classification assertion determine the correctness of classifications to accounts. We want to make sure that the accounts are being properly classified or the amounts are being properly classified to the proper classes.