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"An auditor i:., required to use assertions for classes of transactions, account balances and presentation and disclosure in sufficient detail in order to form a basis...

      

"An auditor i:., required to use assertions for classes of transactions, account balances and
presentation and disclosure in sufficient detail in order to form a basis for the assessment of risks
of material .misstatement and the design:and performance of further audit-procedures"'.
Required:
Identify the assertions used by auditors in the following categories:
i. Assertions about account balances at the period end
ii. Assertions about presentation and disclosure.

  

Answers


Kavungya
i) Assertion used by the auditor about account balances at the period end.
Completeness: Ensure that the balances have been disclosed in the hooks or accounts
completely.
Accuracy: Obtain evidence that the accounts balances have been recorded accurately.
Rights and obligations. Ensures that the assets are the rights of the business and liabilities are
its obligations.
Existence; this is a representation by management that assets recorded and presented in the
financial statements actually do exist.

ii) Assertions about presentation and disclosures.
Cut off: Ensures that all the disclosures in the financial statements are related to the period in
which they are incurred and that no part of the disclosure have been done twice.
Completeness: Confirm that all assets and liabilities have been recorded and disclosed
completely.
Rights and obligations: Assets are the rights of the entity and liabilities arc the obligations of
the business.
Valuations: Ensure that assets and liabilities have been fairly valued.
Kavungya answered the question on May 14, 2019 at 14:01


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