kashifafridi

The financial statement assertions in ISA500 says that they fall into three classes:

1. Classes of transactions
2. Account balances
3. Presentation & Disclosure
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Financial statements are a summary of managements assertions.

Types of assertions are

Completeness, Cutoff, Classification
Occurrence
Measurement
Presentation and disclosure
Accuracy
Rights and obligations
Existence

These make the word COMPARE. (Mnemonics)

ISA 500, Audit evidence divides assertions into
• Transactions and events
• Account balances
• Presentation and disclosure

If it relates to a transaction, then verify whether the existing controls will affect the assertions of:
COACC
COACC = Completeness, Ocuurence, Accuracy, Cutoff and Classification

If it relates to a year end balance then verify whether the existing controls will affect the assertions of:
CMRECC
CMRECC = Completeness, Measurement, Rights and Obligations, Existance, Cutt-off, Classification

If it relates to the disclosures in the FS then verify whether the existing controls will affect the assertions of:
COMPAC
COMPAC = Completeness, Occurrence, Measurement, Presentation, Accuracy, Classification

ADBot

Les

Thank you.

mayflower

Thanks again for ur post. lots of useful assertions.

caac gollab

i think 'measurement' is replaced by 'valuation and allocation'. can anyone confirm this?

erzhebet

Thank you.

ernestchua

great overview idea for everyone

jiesi27

Thank you.

fancyrose

thanks for sharing your precious knowledge!! ^o^
it's very useful!

dagmara

Thank you. That's all nicely in the nutshell.

tropicallove

greaat idea! i found assertions really hard to memorise