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if a substantive procedure relates to valuation and in my answer i have written this substantive procedure verifies accuracy , valuation and allocation . So will i get marks.
If a substantive procedure relates to accuracy, completeness , cut off etc , so is it necessary to write that it verifies accuracy , completeness , cut off etc or can i write only completeness is verified. will i get marks if i only write one assertions for a substantive procedure that contains more than one assertion
Q1 – yes – you will see this in some ACCA answers – “accuracy, valuation and allocation” is a collective assertion. But equally you won’t get penalised for just writing valuation (!)
Q2 – you should be as selective as possible and really think whether one procedure really satisfies 3 assertions – you are getting 1 mark for a relevant substantive procedure with a relevant assertion – so although “accuracy and completeness” are often satisfied together, cut-off is an assertion for transactions and “bi-directional” (i.e. either side of the year end) – whereas completeness is “uni-directional” (i.e. looking for understatement).
For example – matching GDNs and sales invoices (or GRNs and purchase invoices) is a cut-off procedure but does not concern monetary amounts so cannot satisfy the assertion of accuracy.
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discuss with management the rationale for change in revaluation ,is which assertion?
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