Existence assertion
The existence assertion concerns whether assets, liabilities or equity interests recorded in financial statements exist at the relevant date. It helps direct procedures from recorded amounts to supporting evidence or physical items.
Worked example
The auditor selects recorded equipment and inspects the identified machines at the entity’s premises.
Common mistake
Existence is not proof that the entity owns an asset or that its carrying amount is correct.
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 |