Jump to content

- - - - -

management's assertions

  • Please log in to reply
2 replies to this topic

#1 ramzacless



  • CPAnet Member
  • Pip
  • 9 posts

Posted 22 August 2013 - 02:07 AM

Can someone explain to me how to use the following four assertions?


 A Valuation.
 B Rights and obligations.
 C Existence or occurrence.
 D Completeness
When I get the question asking  to identify or choose which assertion, I was completely lost.  I was very confused with these 4 assertions. please use a simple way to teach me how to answer the question by applying these 4 assertions.
Thanks for your help!


#2 smalltimeauditor


    Advanced Member

  • CPAnet Member
  • PipPipPip
  • 35 posts

Posted 26 August 2013 - 12:06 AM

The context of the assertion changes with what you're trying to accomplish. Transactions? Balances? Presentation? For example, Rights and obligations - for the balance category, is the entity actually responsible for this liability(or control the right to an asset)? whereas for presentation purposes - the disclosed events and transactions occured and pertain to the entity.


#3 Manali



  • CPAnet Member
  • PipPip
  • 14 posts

Posted 06 September 2013 - 10:11 PM

Valuations - Account balances, transaction and disclosures are properly valued or not


Rights and obligations - entiry hold the right to Assests and Liabilities are the obligation to the enity (In other words, Does the company actually owns the assets and owes the liabilities?)


Existence or occurrence.- Actually existed or not (Check from general ledger to original document like inovices or shipping document)


Completness - Properly recorded or not (Check from original document like invoices or shipping document to general ledger weather it is properly recorede or not?)