The assertions about account balance at the period end refer to the criteria that auditors use to evaluate the financial statements and determine if the reported account balances are accurate and reliable. These assertions include:
1. Existence: The account balances reported in the financial statements actually exist as of the period end.
2. Completeness: All relevant and material account balances are included in the financial statements.
3. Valuation or Allocation: The account balances are accurately valued and allocated in accordance with the applicable accounting framework.
4. Rights and Obligations: The entity has legal ownership or rights to the account balances and the related obligations are accurately reflected.
5. Presentation and Disclosure: The account balances are appropriately presented and disclosed in the financial statements in accordance with the applicable accounting standards.
6. Accuracy: The account balances are arithmetically accurate and calculations are free from material errors.
Auditors use these assertions to guide their audit procedures and ensure that the financial statements provide a true and fair view of the entity's financial position at the period end.
Define the assertions about account balance at the period end.
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