Auditing

5.7. Describe the management assertions somewhat the entitys financial pair and performance embodied in the financial announce. Financial cut through assertions ar assertions about the entitys financial smudge and act 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 accomplishments, paper 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 get occurred and related to the entity b. Completeness all transactions and events that should beat been preserve, suffer been record c. Accuracy amounts and other d ata relating to put down 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.

introduction assets, liabilities and virtue 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 faithfulness interests that should have been rec orded, have been recorded d. Valuation! 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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