1.3 - Assertions about Account Balances, and Related Disclosures

Question 1

Existence

Answer 1

Assets, liabilities and equity interests exist

Question 2

Rights and obligations

Answer 2

The entity holds or controls the rights to assets, and liabilities are the obligations of the entity

Question 3

Accuracy, valuation and allocation

Answer 3

Assets, liabilities and equity interests have been included in the financial statements at appropriate amounts and any resulting variation or allocation adjustments have been appropriately recorded, and related disclosures have been appropriately measured and described

Question 4

Completeness

Answer 4

All assets, liabilities and equity interests that should have been recorded have been recorded and all related disclosures that should have been included in the financial statements have been included

Question 5

Classification

Answer 5

Assets, liabilities and equity interests have been recorded in the proper accounts

Question 6

Presentation

Answer 6

Assets, liabilities and equity interests are appropriately aggregated or disaggregated and clearly described, and related disclosures are relevant and understandable in the context of the requirements of the applicable financial reporting framework