Tuesday, November 08, 2011

Audit Assertion

Accuracy
Completeness
Cut-off
Allocation

Classification and understandability
Occurrence
Valuation
Existence
Rights and obligation

Based on the above assertions, the formula to remember these terms are by mentioning ACCA COVER. WOW! Isn't it amazing? Again, based on the assertions above, this is not the end but to ensure that all accounts such as revenue, assets, cash, etc are asserted in those terms so the auditor may be able to perform his/her job to express his/her opinion whether the financial statements are prepared in accordance to establish criteria/accounting framework and to report to the shareholders ultimately that the financial statements are prepared free from error and material misstatement/fraudulent.

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