Assertions Flashcards
What are the three categories of assertions in Auditing?
- Assertions about transactions and events
- Assertions about account balances
- Assertions about presentation & Disclosure
What is does the completeness assertion for transactions ensure?
That all transactions and events that shoud have been recorded were recorded.
What does the occurrence assertion test?
Whether recorded transactions and events actually happened and relate to the entity
What does the accuracy assertion for transactions ensure?
That amounts and other data relating to transactions are recorded correctly
What does the cut off/Measurement assertion for transactions test?
That transactions and events are recorded in the correct accounting period
What does the valuation assertion check for?
Asets and liabilities are recorded at proper values
What does ownership and rights & Obligations check for?
The entity owns the assets and has obligations for the liabilities
What does the presentation and disclosure assertion refer to?
Financial statements are properly presented, and necessary information is clearly disclosed
What are the assertions?
- Completeness
- Existence or occurrence
- Accuracy or measurement
- Valuation
- Ownership and rights & obligations
- Presentation & disclosure
