Get premium membership and access questions with answers, video lessons as well as revision papers.
When preparing financial statements the management makes certain implicit or explicit assertions
about the financial affairs of the company.
Consequently, when the auditor is obtaining evidence from a substantive procedure, he is
concerned about testing or substantiating the truth of these assertions. The assertions are
categorized as follows;
1. Assertions about hinting of transactions and events for the period under audit i.e.
•• Occurrence transaction and events that have been recorded have occurred and pertain to the entity.
•• Completeness
•• Cut off. Transactions and events have been recorded in the appropriate accounting period
•• Accuracy Amounts and other data relating to the recorded transactions have been recorded appropriately.
•• Classification. Transactions and events have been recorded in the correct period
2. Assertions about account balances at the year end.
•• Existence. Assets or liabilities exist at a given date
•• Rights and obligations
•• completeness
•• valuation and allocation
3. Assertions about presentation and disclosure.
•• Occurrence and rights and obligation. Disclosed events and transactions and other matters have occurred and pertained to the entity
•• Completeness All disclosures that should have been included e.g. compositions of director’s fees.
•• Measurement and valuation. Financial and other information are disclosed fairly and at appropriate amounts
•• Classification and understandability. Financial information is appropriately presented and described, and disclosures are clearly expressed
The auditor may use the assertions described above or may express them differently provided all aspects described above have been covered .
Wilfykil answered the question on April 11, 2019 at 13:19
- Which are the qualities of audit evidence?(Solved)
Which are the qualities of audit evidence?
Date posted: April 11, 2019. Answers (1)
- How does internal control system help prevent and detect fraud and error?(Solved)
How does internal control system help prevent and detect fraud and error?
Date posted: April 11, 2019. Answers (1)
- Give the procedures to be applied as general leads to where fraud or error may have occurred.(Solved)
Give the procedures to be applied as general leads to where fraud or error may have occurred.
Date posted: April 11, 2019. Answers (1)
- Which are the common types of fraud?(Solved)
Which are the common types of fraud?
Date posted: April 11, 2019. Answers (1)
- What will the extent of reliance on internal control system by the auditor depend on?(Solved)
What will the extent of reliance on internal control system by the auditor depend on?
Date posted: April 11, 2019. Answers (1)
- What actions are taken when internal control system is identified as weak?(Solved)
What actions are taken when internal control system is identified as weak?
Date posted: April 11, 2019. Answers (1)
- What does tests of control include?(Solved)
What does tests of control include?
Date posted: April 11, 2019. Answers (1)
- Which are the control procedures in auditing?(Solved)
Which are the control procedures in auditing?
Date posted: April 11, 2019. Answers (1)
- What are the factors influencing the control of audit environment?(Solved)
What are the factors influencing the control of audit environment?
Date posted: April 11, 2019. Answers (1)
- Discuss Risk assessment in auditing(Solved)
Discuss Risk assessment in auditing
Date posted: April 11, 2019. Answers (1)
- Which are the components of accounting and internal control system?(Solved)
Which are the components of accounting and internal control system?
Date posted: April 11, 2019. Answers (1)
- Define the following terms:
1. Accounting system
2. Control environment
3. Internal audit
4. Internal Control(Solved)
Define the following terms:
1. Accounting system
2. Control environment
3. Internal audit
4. Internal Control
Date posted: April 11, 2019. Answers (1)
- What are the reasons for introducing Peer Review?(Solved)
What are the reasons for introducing Peer Review?
Date posted: April 11, 2019. Answers (1)
- What are the objectives of Peer Review?(Solved)
What are the objectives of Peer Review?
Date posted: April 11, 2019. Answers (1)
- Discuss quality control policies and procedures at individual audit level(Solved)
Discuss quality control policies and procedures at individual audit level
Date posted: April 11, 2019. Answers (1)
- Define quality control in auditing(Solved)
Define quality control in auditing
Date posted: April 11, 2019. Answers (1)
- Which are the audit planning procedures?(Solved)
Which are the audit planning procedures?
Date posted: April 11, 2019. Answers (1)
- Which are the problems in developing and implementing audit plan?(Solved)
Which are the problems in developing and implementing audit plan?
Date posted: April 11, 2019. Answers (1)
- What is an audit planning memorandum?(Solved)
What is an audit planning memorandum?
Date posted: April 11, 2019. Answers (1)
- Give advantages of good audit planning(Solved)
Give advantages of good audit planning
Date posted: April 11, 2019. Answers (1)