Auditing Assertions
1. Assertions about classes of transactions and events:
I. Occurrence: transactions and events so recorded in the financial statements actually occurred and relates to the same period.
II. Completeness: all such transactions and events that required recording have been recorded
III. Accuracy: transactions and ancillary information have been recorded with accurate amounts
IV. Cutoff: only those transactions and events have been recorded that pertains to the accounting period under consideration
V. Classification: transactions and events have been recorded in the related accounts properly
2. Assertions about account balances at the period end:
I. Existence: all the assets, liabilities and other interests that appear in the financial statements actually exist.
II. Rights and obligations: the assets presented in the financial statements are actually assets for which entity holds the ownership right or has all the necessary controls the right to use the asset. Similarly, the liabilities recorded are actually the obligations of the entity.
III. Completeness: all the assets, interests and obligations of the entity that required recording have been recorded in the financial statements
IV. Valuation and allocation: all the assets, obligations and equity interests have been valued appropriately and if any allocation was need than it has been done already.
3. Assertions about presentation and disclosure:
I. Occurrence and rights and obligations: transactions, events and the related or other matters disclosed in the financial statements actually occurred.
II. Completeness: all the necessary disclosures that required recording have been recorded.
III. Classification and understandability: financial information in the financial statement has been presented appropriately with clear expression of disclosures to the extent possible to help users of financial statements.
IV. Accuracy and valuation—financial or non-financial information is disclosed in the financial
I. Occurrence: transactions and events so recorded in the financial statements actually occurred and relates to the same period.
II. Completeness: all such transactions and events that required recording have been recorded
III. Accuracy: transactions and ancillary information have been recorded with accurate amounts
IV. Cutoff: only those transactions and events have been recorded that pertains to the accounting period under consideration
V. Classification: transactions and events have been recorded in the related accounts properly
2. Assertions about account balances at the period end:
I. Existence: all the assets, liabilities and other interests that appear in the financial statements actually exist.
II. Rights and obligations: the assets presented in the financial statements are actually assets for which entity holds the ownership right or has all the necessary controls the right to use the asset. Similarly, the liabilities recorded are actually the obligations of the entity.
III. Completeness: all the assets, interests and obligations of the entity that required recording have been recorded in the financial statements
IV. Valuation and allocation: all the assets, obligations and equity interests have been valued appropriately and if any allocation was need than it has been done already.
3. Assertions about presentation and disclosure:
I. Occurrence and rights and obligations: transactions, events and the related or other matters disclosed in the financial statements actually occurred.
II. Completeness: all the necessary disclosures that required recording have been recorded.
III. Classification and understandability: financial information in the financial statement has been presented appropriately with clear expression of disclosures to the extent possible to help users of financial statements.
IV. Accuracy and valuation—financial or non-financial information is disclosed in the financial