Auditing

5.7. Describe the management assertions somewhat the entitys pecuniary pay heed and performance embodied in the financial announce. Financial writing assertions ar assertions about the entitys financial smudge and exertion that are embodied in financial report do by directors and managers. Auditors use these assertions to assess risks by considering different types of potence misstatements that whitethorn According to ASA 315 (ISA 315), there are three categories of assertions which are classes of achievements, narration balances, and presentation and disclosure. Management assertions about financial position and financial performance are as below: * Assertions about classes of transaction (Profit and Loss Statement) a. concomitant transactions and events that beget been record expedite occurred and related to the entity b. Completeness all transactions and events that should open been preserve, come been preserve c. Accuracy amounts and other data relating to record transactions and events have been recorded appropriately d. Cut-off transactions and events have been recorded in the class accounting period e. Classification transactions and events have been recorded in the proper accounts * Assertions about account balances (Balance Sheet) a.

man assets, liabilities and righteousness interests exist b. Rights and obligations the entity holds or controls the rights to assets and liabilities are the obligations of the entity c. Completeness all assets, liabilities and virtue interests that should have been re corded, have been recorded d. Valuatio! n and allocation assets, liabilities and equity interests are included in the financial report at appropriate amounts and any resulting rating adjustments are appropriately recorded * Assertions about presentation and disclosure a. Occurrence and rights and obligations: disclosed events, transactions and other matters have occurred and pertain to the...If you indigence to get a full essay, order it on our website: OrderCustomPaper.com

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