Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Assertions
- This topic has 6 replies, 2 voices, and was last updated 8 years ago by Ken Garrett.
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- August 25, 2015 at 1:41 pm #268476
Dear Sir,
Assertions are generally interlinked right?
for example if the transaction has occurred, it will then recorded completely. Am I right?
So we can audit procedure in this regard can be interchangeable like if we use one substantive procedure in Occurrence we can also use that for completeness?
Regards
August 25, 2015 at 11:02 pm #268528Assertions relate to amounts appearing on the FS. So for the sales figure you need to ensure that the assertions it makes about completeness, occurrence and cut-off are, for example, all correct.
You need different tests on sales to confirm completeness and occurence. For example, occurence can be tested by tracing back to sales orders; for completeness you would need to trace forward from sales orders to ensure all sales had been recorded.
August 26, 2015 at 3:30 pm #268621So for example if we want to check occurrence we can track from sales general ledger back to sales journal and documents and for completeness we will track from journal enteries posting to general ledger?
And same for accuracy?
August 26, 2015 at 3:38 pm #268625And for accuracy we can also check posting from sales ledger to general ledger just like completeness?
August 26, 2015 at 5:55 pm #268659Yes. You could deal with accuracy ad completeness at the same time.
August 26, 2015 at 6:13 pm #268670Thanks a lot..
So if auditor tracks transactions from journal to General ledger he/she can identify whether assertions related to completeness is met (as well as accuracy).
If auditor goes from general posting back to source documents he/she will get evidence regarding occurrence?
Am I right?
Just confuse in ledger system
Regards
August 27, 2015 at 9:26 am #268753Broadly yes.
For completion you also need to be confident that the transaction gets into the day books as ledger postings often come from there.
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