Chapter 5: Evidence and Documentation Flashcards
Management Assertions: Transactions
- Occurrence
- Completeness
- Accuracy
- Cutoff
- Classification
- Presentation
Management Assertions: Account balances
- Existence
- Rights and obligations
- Completeness
- Accuracy, valuation, and allocation
- Classification
- Presentation
Occurrence
Transactions that have been recorded/disclosed have occurred.
Completeness
All transactions that should have been recorded have been recorded.
Accuracy
Amounts and other data have been recorded appropriately, and related disclosures have been appropriately measured and described.
Cutoff
Transactions and events have been recorded in the correct accounting period
Classification
Transactions and events have been recorded in the proper accounts.
Presentation
Disclosures are relevant and understandable.
Existence:
Assets, Liabilities, and Equity interests exist
Rights and Obligations
the entity holds or controls the rights to the assets, and liabilities are the obligations of the entity
Completeness
All Assets, Liabilities, and equity interests that should have been recorded have been recorded.
Accuracy, Valuation, and Allocation
Assets, liabilities, and equity interests have been included in the Financial Statements at appropriate amounts, and any resulting valuation or allocation adjustments have been appropriately recorded, and related disclosures have been appropriately measured and described.
Classification
Assets, liabilities, and equity interests have been recorded in the proper accounts.
Presentation
Disclosures are relevant and understandable.
