AUE 2602 summary
Assertions are categorised as follows : assertions about classes of transactions and events for period under audit e.g. sales, interest received assertions about account balances at year-end e.g. accounts receivable, property, plant and equipment assertions about presentation and disclosure e.g. notes that support Statement of Financial Position account headings, contingent liabilities
Assertions for Statement of Financial Position transactions and balances :
Assertion Audit objective - to obtain satisfaction that :
Completeness
individual transactions and balances in respect of specific kind of asset or liability are fully accounted for in the accounting records and financials
Valuation & allocation
the balance for the specific asset or liability has been accounted for at the appropriate carrying value and that the transactions have been correctly allocated to the proper period and recorded at the proper amount
Existence
at a given date the asset or liability did exist and the transactions did take place during the period in question
Rights & obligations
at a given date the asset or liability pertains to the entity and that the transactions did take place during the period in question
Presentation & disclosure
the asset or liability was disclosed, classified and described in accordance with the applicable legal requirements and generally accepted accounting practice
Assertions for Statement of Comprehensive Income transactions and balances :
Assertion Audit objective - to obtain satisfaction that the specific revenue or expenditure :
Completeness
transactions and balances are fully accounted for in the accounting records and financial statements
Occurrence
transactions actually took place during the period in question (occurrence) transactions pertain to the entity (validity)
Cut-off / accuracy / classification
transactions are
Assertions for Statement of Financial Position transactions and balances :
Assertion Audit objective - to obtain satisfaction that :
Completeness
individual transactions and balances in respect of specific kind of asset or liability are fully accounted for in the accounting records and financials
Valuation & allocation
the balance for the specific asset or liability has been accounted for at the appropriate carrying value and that the transactions have been correctly allocated to the proper period and recorded at the proper amount
Existence
at a given date the asset or liability did exist and the transactions did take place during the period in question
Rights & obligations
at a given date the asset or liability pertains to the entity and that the transactions did take place during the period in question
Presentation & disclosure
the asset or liability was disclosed, classified and described in accordance with the applicable legal requirements and generally accepted accounting practice
Assertions for Statement of Comprehensive Income transactions and balances :
Assertion Audit objective - to obtain satisfaction that the specific revenue or expenditure :
Completeness
transactions and balances are fully accounted for in the accounting records and financial statements
Occurrence
transactions actually took place during the period in question (occurrence) transactions pertain to the entity (validity)
Cut-off / accuracy / classification
transactions are