Question

Cite the assertion for each of substantive procedure.

Answer 1

The assertions for Substantive Procedures are as follows:

a. Occurence and Existence : Transactions and Events recorded in the books and financial statements have actually occured and relate to the entity during the financial year.

b. Completeness : All the transactions and events have been recorded in their entirety and with full amounts.

c. Accuracy and Valuation : Transactions and events have been recorded with the actual amounts that they pertain to.

d. Classification : Transactions have been correctly classified in the accounts that relate to them and properly presented in the Financial Statements under their respective heads.

e. Cut-Off : Transactions and Events have been recorded which pertain to the current financial year in the current financial year.