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These assertions are relevant to auditors performing a financial statement audit in two ways. First, the objective of a financial statement audit is to obtain sufficient appropriate audit evidence to conclude on whether the financial statements present fairly, in all material respects, the financial position of a company and the results of its ...
Financial statement assertions [ edit ] It is stated in ISA 315 (paragraph A.124) that the auditor should use assertions for classes of transactions, account balances, and presentation and disclosures in sufficient detail to form a basis for the assessment of risks of material misstatement and the design and performance of further audit procedures.
Amendment to Statement on Auditing Standards No. 50: Reports on the Application of Accounting Principles full-text: June 2002 98: Omnibus Statement on Auditing Standards-2002 full-text: September 2002 99: Consideration of Fraud in a Financial Statement Audit full-text: October 2002 100: Interim Financial Information full-text: November 2002 101
For example, an auditor may: physically examine inventory as evidence that inventory shown in the accounting records actually exists (existence assertion); inspect supporting documents like invoices to confirm that sales did occur (occurrence); arrange for suppliers to confirm in writing the details of the amount owing at balance date as evidence that accounts payable is a liability (rights ...
Using the work and reports of other auditors (supersedes paragraphs 32 and 36 of chapter 10 of Statement on auditing procedure no. 33) full-text: 1971 July 46: Piecemeal opinions (supersedes paragraphs 22-25 of chapter 10 of Statement on auditing procedure no. 33 and pertinent portions of paragraph 9 of Statement on auditing procedure no. 34 ...
Lists of assertion-level control objectives are available in most financial auditing textbooks. Excellent examples are also available in AICPA Statement on Auditing Standards No. 110 (SAS 110) [6] for the inventory process. SAS 106 includes the latest guidance on financial statement assertions. [7]
The examination is to be performed by a person or persons having adequate technical training and proficiency as an auditor. In all matters relating to an assignment, an independence in mental attitude is to be maintained by the auditor or auditors.
The American Institute of Certified Public Accountants has issued guidance to accountants and auditors since 1917, when, at the behest of the U.S. Federal Trade Commission and auspices of the Federal Reserve Board, it issued a series of pamphlets to the accounting community in regard to preparing financial statements and auditing (then referred to as "verification" and later "examination"). [4]