In many cases, the meaning of the assertions is fairly obvious and in preparation for their FAU or AA exam candidates are reminded of the importance to learn and be able to apply the use of assertions in the course of the audit. Particularly, candidates need to be able to identify and...
Also, consideration should be given to the reliability of audit evidence gained; for example, evidence gained via confirmation from a third party will be more reliable than verbal assertions from management. Candidates should also consider the practicality of obtaining the evi...
(3) Written representations are needed to support other audit evidence relevant to the financial statements or specific assertions in the financial statements, if determined necessary by the auditor or required by other international Standards on Auditing. (4) This may be necessary for judgemental area...
F.S assertions P/L 1.Occurence: transactions and events that have been recorded have occured and pertain to the entity 2.Completeness: all transactions and events that should be recorded have been recorded. 3.Accuracy: data in the P/L have been recorded appropriately 4.Cutoff:transactions and...
In the audit of fixed assets, the test of addition will help to ensure the occurrence, valuation, completeness and classification assertions on fixed assets. An example of the test of fixed assets addition: Select a sample of fixed assets additions ...
to describe the substantive audit procedures you would perform to obtain sufficient and appropriate evidence for assertions relating to receivable. Alternatively, a section A question could ask you to select an appropriate procedure from a list of procedures to provide evidence over a particular ...
17) Given the economic and time constraints in which auditors can collect evidence about management assertions about the financial statements, the auditor normally gathers evidence that is: A) irrefutable. B) conclusive. C) persuasive. D) completely convincing. ...
Financial statement assertions and audit evidence 2. Audit procedures 3. Audit sampling and other means of testing 4. The audit of specific items 5. Computer-assisted audit techniques 6. The work of others 7 Not-for-profit organisations E. Review and reporting 1. Subsequent events 2. Going ...
Assertions Occurrence: Did a valid sale occur? Company controls Pre-sale credit card validation is in place. Close monitoring of past defaults. Assessment The control design is effective. A walk-through of procedures confirmed these controls are in place. ...
assertions. Further, the revenue area is subject to high fraud risk. Numerous significant fraudulent financial reporting incidents involving improper revenue recognition schemes have been reported. Accordingly, the auditor must possess knowledge about the entity's revenue recognition process and plan the ...