Rights and obligations assertion
Rights and obligations concern whether the entity holds or controls rights to reported assets and whether reported liabilities are obligations of the entity. Physical possession is not always proof of ownership or control.
Worked example
The auditor inspects title documents and lease agreements for a property included in non-current assets.
Common mistake
Do not conclude that consignment goods belong to the entity merely because they are in its warehouse.
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 |