Set 3 - AU Chapter 13 Assertions

Question 1

What are the balance sheet assertions and what happens during violations? CAS 315

Answer 1

Existence - over-stated
Rights and obligations - over-stated
Completeness - under-stated
Accuracy, valuation and allocation - over/under-stated
Classification - among BS only
Presentation

Question 2

What are the income statement assertions and what happens when wrong? CAS 315

Answer 2

Occurrence - over-stated
Completeness - understated
Accuracy - over/under-stated
Cut-off - over/under-stated
Classification - among IS only
Presentation