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Terms in this set (115)

Financial statement assertions (Audit & Assurance)
· Assertions about classes of transactions and events for the period under audit:
o Occurrence - transactions and events that have been recorded have occurred and pertain to the entity
o Completeness - all transactions and events that should have been recorded have been recorded
o Accuracy - amounts and other data relating to recorded transactions and events have been recorded appropriately
o Cut-off - transactions and events have been recorded in the correct accounting period
o Classification - transactions and events have been recorded in the proper accounts
o Presentation - transactions and events are appropriately aggregated or disaggregated and clearly described, and related disclosures are relevant and understandable
· Assertions about account balances at the period end:
o Existence - assets, liabilities, and equity interests exist
o Rights and obligations - the entity holds or controls the rights to assets, and liabilities are the obligations of the entity
o Completeness - all assets, liabilities and equity interests that should have been recorded have been recorded
o Accuracy, valuation, and allocation - assets, liabilities, and equity interests are included in the financial statements at appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded
o Classification - assets, liabilities, and equity interests have been recorded in the proper accounts
o Presentation - assets, liabilities, and equity are appropriately aggregated or disaggregated and clearly described, and related disclosures are relevant and understandable
Case: TankCo, Ferguson Real Estate, Roxanne Kalpert, Solar Panel Solutions, Elcar
Reference: CAS 315.A124