ACC 470

Classes of Assertions:
Classes of Transactions and Events for the Period
 Occurrence: transactions that have been recorded have occurred
 Completeness: All transactions and events that should have been recorded have been recorded
 Authorization: All transactions and events have been properly authorized
 Accuracy: Amounts have been recorded properly
 Cutoff: Transactions and events have been recorded in the correct accounting period
 Classification: transactions and events have been recorded in the proper accounts
Account Balances at Year End
 Existence: assets, liabilities and equity interests exist
 Rights and Obligations: the entity holds and controls the rights to the assets, and liabilities are the entity’s obligations
 Completeness: all assets, liabilities and equities that should have been recorded have been recorded
 Valuation & Allocation: assets, liabilities and equity are included in appropriate amounts
Assertions about presentation and disclosures
 Occurrence & Rights & Obligations: disclosed events, transactions, and other matters have occurred and pertain to the entity
 Completeness: all disclosures that should have been included have been
 Classification & Understandability: financial information is appropriately presented and described and disclosures are clearly expressed
 Accuracy & Valuation: financial and other information is disclosed fairly and in appropriate amounts

 Sufficiency – quantity of evidence
 Appropriateness – quality of evidence o Inversely related with sufficiency
Audit procedures: specific acts performed by the auditor to gather evidence about specific assertions
1. Risk assessment procedures
2. Tests of controls
3. Substantive tests
4. Test of details for the remainder of assurance needed
Inspecting Documents
 Vouching: ( Occurrence) going from journal or ledger to the source documents
 Tracing: (Completeness) from source documents to the journal or ledger
Audit