Assertions
Assertions are representations, explicit or otherwise, about recognition, measurement, presentation and disclosure embodied in financial statements. Auditors use assertions to consider types of potential misstatement and design targeted procedures. Relevant assertions differ between transactions, balances and disclosures.
Worked example
To test existence, an auditor traces selected recorded inventory items to goods physically present.
Common mistake
A procedure must address the intended assertion: inspecting recorded items alone may not establish that all items were recorded.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |