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Hi Sir
I am getting very confused between testing completeness and existence assertions when solving questions.
Could you please help me with the same?
Thank you!
As per my understanding, for completeness, we shall start with related documents and check if the entries have been made in the ledgers, but that does not seem to be the case everytime
Really getting confused with this
Existence applies only to BALANCES … essentially assets and liabilities and you test from the SOFP “to source”.
Completeness applies also to transactions and events and you test “from source” to the financial statements.
I had come across an example in which it said “Cashbook should be agreed to till receipts to determine completeness”.
So in this case should we not test till receipts to cashbook for completeness?
This is what is confusing me
The above example is to check the revenue balance
Bascially, agreeing revenue from cashbook to till receipts to test for completeness
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