Audit Assertions

In: Business and Management

Submitted By redparade
Words 301
Pages 2
ISA 315 categorizes the different assertions in three categories which are further classified as follows:
1. Assertions about classes of transactions and events: 1. Occurrence: transactions and events so recorded in the financial statements actually occurred and relates to the same period. 2. Completeness: all such transactions and events that required recording have been recorded 3. Accuracy: transactions and ancillary information have been recorded with accurate amounts 4. Cutoff: only those transactions and events have been recorded that pertains to the accounting period under consideration 5. Classification: transactions and events have been recorded in the related accounts properly
2. Assertions about account balances at the period end: 1. Existence: all the assets, liabilities and other interests that appear in the financial statements actually exist. 2. Rights and obligations: the assets presented in the financial statements are actually assets for which entity holds the ownership right or has all the necessary controls the right to use the asset. Similarly, the liabilities recorded are actually the obligations of the entity. 3. Completeness: all the assets, interests and obligations of the entity that required recording have been recorded in the financial statements 4. Valuation and allocation: all the assets, obligations and equity interests have been valued appropriately and if any allocation was need than it has been done already.
3. Assertions about presentation and disclosure: 1. Occurrence and rights and obligations: transactions, events and the related or other matters disclosed in the financial statements actually occurred. 2. Completeness: all the necessary disclosures that required recording have been recorded. 3. Classification and understandability: financial information in…...

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