- This topic has 1 reply, 2 voices, and was last updated 4 years ago by
.
- Posts
- Topics: 40
- Replies: 42
- ☆☆
Bank loan for 6million was given to the client.
There is risk that the disclosures for this bank loan may not be adequate.
So is it risk over completeness or presentation or both?Looking at the assertions on page 83 – and please do use this for reference – if the transaction that is the making of the loan falls under completeness – it is a transaction and we are talking about the disclosure of the transaction.
Looking at the assertions on page 84 – considering the loan as a liability – “Completeness – all ….. and all related disclosures included.”
i.e. related disclosures “go with” the assertion of completeness – and similarly accuracy.
The presentation assertion concerns aggregation/disaggregation and clear descriptions. So if, for example, an intangible asset was included in PPE (i.e. tangible and intangible assets aggregated together when they should be separate), that would be a risk of misstatement in presentation.
- You must be logged in to reply to this topic.