Financial report assertions ar assertions about the entitys financial smudge and operation that are embodied in financial report do by directors and managers. Auditors use these assertions to assess risks by considering different types of potence misstatements that may
According to ASA 315 (ISA 315), there are three categories of assertions which are classes of transactions, account balances, and presentation and disclosure. Management assertions about financial position and financial performance are as below:
* Assertions about classes of transaction (Profit and Loss Statement)
a. concomitant transactions and events that beget been record hasten occurred and related to the entity
b. Completeness all transactions and events that should have been preserve, have been recorded
c. Accuracy amounts and other data relating to recorded transactions and events have been recorded appropriately
d. Cut-off transactions and events have been recorded in the class accounting period
e. Classification transactions and events have been recorded in the proper accounts
* Assertions about account balances (Balance Sheet)
a.
Existence assets, liabilities and equity interests exist
b. Rights and obligations the entity holds or controls the rights to assets and liabilities are the obligations of the entity
c. Completeness all assets, liabilities and equity interests that should have been recorded, have been recorded
d. Valuation and allocation assets, liabilities and equity interests are included in the financial report at appropriate amounts and any resulting rating adjustments are appropriately recorded
* Assertions about presentation and disclosure
a. Occurrence and rights and obligations: disclosed events, transactions and other matters have occurred and pertain to the...If you indigence to get a full essay, order it on our website: Orderessay
If you want to get a full essay, wisit our page: write my essay .
No comments:
Post a Comment