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Hi sir, i would like to ask regarding this statement because i have difficulties to understand the assertion in detail.
Review board minutes for details or additional payments to be made to directors will test COMPLETENESS.
How can i understand that by reviewing the board minutes can test completeness. I hope you can help me 🙁 thank you so much sir 🙂
To test completeness of what is recorded in the financial statements you have to look outside the financial statements for things that should be in the financial statements but might not be.
The directors might agree to in a board meeting to pay bonuses to staff – some months after the y.e but based on their performance during the year – or to settle a dispute which hasn’t been “taken to court” but could be an obligation that means recognising a liability or writing down an asset (e.g. writing off a customer’s debt).
I got it sir, thank you so much for your clear and detail explanation, have a good day, sir ! 🙂
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