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hello frind and admins
can any one plz explain what is the difference between RISK ASSESSMENT AT FINANCIAL STATEMENT LEVEL and ASSERTION LEVEL
waiting foe your replyI thought assertions were contained in the financial statements?? *scratching my head*
Tutor,please explain!To quote ISA 315:
The objective of the auditor is to identify and assess the risks of material
misstatement, whether due to fraud or error, at the financial statement and
assertion levels, through understanding the entity and its environment,
including the entity’s internal control, thereby providing a basis for designing
and implementing responses to the assessed risks of material misstatement.The main point is to avoid material misstatements at the FS level – basically that means that the FS are ‘wrong’. However, to help identify potential misstatements it is important to go to each individual figure in the FS and think about the risk of error in any of the assertions each makes.
the below answer my might also help from the Tutor in understanding the assertions see below
gromit7p said 3 weeks, 1 day ago:
Think of assertion level as ensuring each of the individual figures on the financial statements are ok. FS level is ensuring the FS as a whole are true and fair.
There is lots of material on this site covering what the assertions are. See https://opentuition.com/acca/f8/f8-financial-statement-assertions-and-audit-evidence/
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