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Hello Kim Smith, hope you are fine. I know I am asking a random question. It made my concepts disturbed so I need your help I will be thankful.
Can you please tell which assertion of financial statement can be verified by analytical procedure?
According to my search, it verifies every assertion except Right and Obligation, Presentation and Existence.
Am I right?Short answer – yes
First and foremost analytical procedures are required as risk assessment procedures (bottom of page 52 of the notes).
Substantive analytical procedures (this is what you should call them) can verify most assertions – completeness, accuracy, cut-off, classification and valuation. But, as you say, they cannot verify assertions of existence, rights and obligations and presentation.
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