Question

Your audit supervisor has asked that you write a brief memorandum to the relatively inexperienced members of the audit team explaining the meaning of each of the financial statement assertions applicable to account balances at the end of the period. Find and select the appropriate paragraph in the AICPA Professional standards that provides this information.

Paragraph AU-C _______

Answer 1

THE APPROPRIATE SECTION IS AUC-326.15

WHERE THE AUDITOR IS REQUIRED TO USE THE FOLLOWING ASSERTIONS WHEN AUDITING

1.OCCURRENCE- THE TRANSACTIONS WHEN OCCURRED HAVE BEEN RECORDED AND PERTAIN TO THE ENTITY

2.COMPLETENESS:ALL THE TRANSACTIONS ARE RECORDED IN THE BOOKS OF ACCOUNTS

3.ACCURACY-AMOUNTS RELATED TO THE FINANCIAL DATA HAVE BEEN ACCURATELY RECORDED

4.CUT OFF-ENTRIES TO BE RECORDED FOR A DEFINED PERIOD

5.CLASSIFICATION-ENTRIES HAVE BEEN PROPERLY RECORDED TO THEIR RESPECTIVE ACCOUNTS