Hello, I was reading the following in my Study Text, it's about the audit of tangible non-current assets. The items in inverted commas is which part of the sentence I don't seem to understand what they are trying to convey to me.
- "Obtain a breakdown of additions", cast the list and agree to the non-current asset register: verifies completeness.
- "If assets have been constructed by the client", obtain an analysis of the costs incurred, cast for arithmetical accuracy and agree a sample of costs to supporting documentation (e.g. payroll, material invoices): verifies valuation.
What does the assertion completeness mean?
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Confused as what this means....
12y ago#1Breakdown of additions: look at the total figure for the additions then obtain the details of what the additions were ie breakdown the total into the various items bought. You can really only audit detailed additions eg tracing to purchase invoices.
Some clients construct their own non-current assets. For example, a building company is likely to build it's own offices and stores.
Completeness: is the figure for assets/liabilities complete? Are all liabilities included? Is all stock included in the inventory figure.
Thank you :)
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