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Dear Sir,
Assertions are generally interlinked right?
for example if the transaction has occurred, it will then recorded completely. Am I right?
So we can audit procedure in this regard can be interchangeable like if we use one substantive procedure in Occurrence we can also use that for completeness?
Regards
Assertions relate to amounts appearing on the FS. So for the sales figure you need to ensure that the assertions it makes about completeness, occurrence and cut-off are, for example, all correct.
You need different tests on sales to confirm completeness and occurence. For example, occurence can be tested by tracing back to sales orders; for completeness you would need to trace forward from sales orders to ensure all sales had been recorded.
So for example if we want to check occurrence we can track from sales general ledger back to sales journal and documents and for completeness we will track from journal enteries posting to general ledger?
And same for accuracy?
And for accuracy we can also check posting from sales ledger to general ledger just like completeness?
Thanks a lot..
So if auditor tracks transactions from journal to General ledger he/she can identify whether assertions related to completeness is met (as well as accuracy).
If auditor goes from general posting back to source documents he/she will get evidence regarding occurrence?
Am I right?
Just confuse in ledger system
Regards
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