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MANAGEMENT ASSERTIONS ABOUT TRANSACTIONS Occurrence - The transactions actually took place. Completeness - All transactions that should have been recorded have been recorded. Accuracy - The transactions were recorded at the appropriate amounts. Cutoff - The transactions have been recorded in the correct accounting period. Classification - The transactions have been recorded in the proper accounts. MANAGEMENT ASSERTIONS ABOUT ACCOUNTS Existence - Assets, liabilities and equity balances exist. Rights and Obligations - The entity holds or controls the rights to its assets and owes obligations to its liabilities. Completeness - All assets, liabilities and equity balances that should have been recorded have been recorded. Valuation and Allocation - Assets, liabilities and equity balances are included in the financial statements at appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded. MANAGEMENT ASSERTIONS ABOUT PRESENTATION AND DISCLOSURE Occurrence - The transactions have occurred. Rights and Obligations - The transactions pertained to the entity. Completeness - All disclosures that should have been included in the financial statements have been included. Classification and Understandability - Financial statements is appropriately presented and described, and information in disclosures in clearly expressed. Accuracy and Valuation - Financial and other information is disclosed fairly and at appropriate amounts. REFERENCES Knechel, Salterio and Ballou (2007), Auditing: Assurance & Risk, 3rd edition, Thompson South-Western |
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