Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Confused as what this means….
- This topic has 2 replies, 2 voices, and was last updated 10 years ago by dookhan12.
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- March 7, 2014 at 7:47 pm #161746
Hello, I was reading the following in my Study Text, it’s about the audit of tangible non-current assets. The items in inverted commas is which part of the sentence I don’t seem to understand what they are trying to convey to me.
– “Obtain a breakdown of additions”, cast the list and agree to the non-current asset register: verifies completeness.
– “If assets have been constructed by the client”, obtain an analysis of the costs incurred, cast for arithmetical accuracy and agree a sample of costs to supporting documentation (e.g. payroll, material invoices): verifies valuation.
What does the assertion completeness mean?
March 8, 2014 at 3:02 pm #161798Breakdown of additions: look at the total figure for the additions then obtain the details of what the additions were ie breakdown the total into the various items bought. You can really only audit detailed additions eg tracing to purchase invoices.
Some clients construct their own non-current assets. For example, a building company is likely to build it’s own offices and stores.
Completeness: is the figure for assets/liabilities complete? Are all liabilities included? Is all stock included in the inventory figure.
March 8, 2014 at 4:21 pm #161801Thank you 🙂
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