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Assertions In Obtaining Audit Evidence

(a) Assertions about classes of transactions and events for the period under audit;
i. Occurrence – Transactions and events that have been Recorded have occurred and pertain to the entity.
ii. Completeness – all transactions and events that should have been recorded have been recorded (accruals & depreciation).
iii. Accuracy – amounts and other data relating to recorded transactions and events have been recorded appropriately. (valuation and estimations).
iv. Cutoff – transactions and events have been recorded in the proper period.
v. Classification – transactions and events have been recorded in the proper accounts.

(b) Assertions about account balances at the period end;
i. Existence – assets, liabilities, and equity interests exist.
ii. Rights and obligations – the entity holds or controls the rights to assets, and liabilities are the obligations of the entity.
iii. Completeness – all assets, liabilities and equity interests that should have been recorded have been recorded.
iv. Valuation and allocation – assets, liabilities, and equity interests are included in the financial statements at appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded.

(c) Assertions about presentation and disclosure;
i. Occurrence and rights and obligations – disclosed events, transactions and other matters have occurred and pertain to the entity.
ii. Completeness – all disclosures that should have been included in the financial statements have been included.
iii. Classification and understandability – financial information is appropriately presented and described, and disclosures are clearly expressed.
iv. Accuracy and valuation – financial and other information are disclosed fairly and at appropriate amounts.


This post first appeared on Fundamentals Of Auditing, please read the originial post: here

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Assertions In Obtaining Audit Evidence

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