Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 4: Assertions and audit objective - Coggle Diagram
Chapter 4: Assertions and audit objective
Definition
representation by management, what the directors are saying about FS related to FS
Used by auditor ---> to consider the potential misstatement
---> auditor will test this assertion
2 types of assertion
For account balance
Existence: balance of asset, liability, equity stated in FS actually exist at the year end
Completeness: all balance that should have been recorded, have been recorded
Valuation and allocation, Accuracy: balances are included at the appropriate amount
Right: control and ownership
Obligation: obligated to pay a liabilities
Classification: balances are properly classified
Presentation: Balances are properly presented
For transaction
Occurrence: Transaction recorded in FS actually happen in the year
Completeness
Accuracy
Classification
Presentation
Cut-off: Transactions recorded in correct accounting period
Audit Procedures
Analytical Procedures
Enquiry