1. Finacial Statement Assertions Flashcards
The auditor considers these assertions for the various transaction classes, financial statement accounts and disclosures. When all assertions have been made for an account he account is considered to be what?
In conformity with generally accepted accounting principles
Define relevant assertions
Assertions that have meaningful bearing on whether an account balance, transaction or disclosure is fairly stated
In transaction classes, defined occurrence.
Transactions and events that have been recorded have occurred and pertain to the entity
In transaction classes, define completeness.
I’ll transactions and events have been recorded
In transactions classes, defined accuracy.
Amounts and other data relating to recorded transactions have been recorded appropriately
In transaction classes, define cut off
Transactions and events have been recorded in the correct accounting.
In transaction classes, define classification
Transactions and events have been recorded in the proper accounts
In account balances, defined existence
Assets, liabilities, and equity interests exist
In account balances, define rights and obligations.
The entity holds or controls the rights to assets, and liabilities are they obligations of the entity
In account balances, define completeness
All assets, liabilities, and equity interests have been recorded
In account balances, defined valuation and allocation
Assets, liabilities, and equity interests are included at appropriate amounts.
In disclosures, defined occurrence.
Disclosed events and transactions have occurred.
In disclosures, define rights and obligations.
Disclosed events pertaining to the entity.
In disclosures, defined completeness.
All disclosures that should have been included have been included.
In disclosures, defined accuracy and valuation.
Information is disclosed fairly and at appropriate amounts.
