Name the typical specific assertions for investment account balances and provide the related general assertions.
a. Investment securities are on hand or are held in safekeeping by a trustee.
b. Investment cost does not exceed market value.
c. Investment income has been received and recorded.
d. Investments are adequately classified and described in the balance sheet.
An auditor uses audit assertions to perform tests on a companies financial reporting processes.
In financial statements, assertions about the recognition, measurement, presentation, and disclosure of financial information are included.
The assertion have been of 3 categories one of them is Accounts balance .This are balance sheet accounts.
It involves checking of existence, Rights , completeness and valuation.
Accordingly, the specific assertion for investment account balances are as follows:
1. Existence and Rights: investment securities are at hand or held by trustee
2. Valuation : investment cost does not exceed market value.
3. Completeness : investment income received and recorded.
4.class of transactions: investment are adequately classified.
Along with this certain general assertion are also there like cutoff , accuracy
Get Answers For Free
Most questions answered within 1 hours.