- November 15, 2022 at 9:24 pm #671538
I am getting very confused between testing completeness and existence assertions when solving questions.
Could you please help me with the same?
Thank you!November 15, 2022 at 9:30 pm #671539
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 thisNovember 16, 2022 at 8:32 am #671571
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.November 16, 2022 at 9:45 am #671596
Please can you give an example “that does not seem to be the case”.November 18, 2022 at 8:06 pm #671821
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 meNovember 18, 2022 at 8:08 pm #671822
The above example is to check the revenue balance
Bascially, agreeing revenue from cashbook to till receipts to test for completenessNovember 18, 2022 at 9:28 pm #671824
For completeness it should be till receipts to cashbook (to cash/bank a/c in general ledger = balance in SoFP).
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