Page 59 - CA Inter Audit PARAM

CA Ravi Taori
• Assertions about presentation and disclosure:

o Occurrence and rights and obligations—disclosed events, transactions, and
other matters have occurred and pertain to the entity.
o Completeness—all disclosures that should have been included in the financial
statements have been included.
o Classification and understandability—financial information is appropriately
presented and described, and disclosures are clearly expressed.
o Accuracy and valuation—financial and other information are disclosed fairly and
at appropriate amounts.
Author’s Note
This is a master answer for Assertions. Students are required to write the appropriate part as per the
requirements of the question. For example student may be asked about one particular assertion, student
should write that only in the answer.

QNO Identifying Assertion for Audit Procedure-Cases Old Course -- (N20R/M21M/ M18E/M23M/N23M)
315.19 Bhaskar CNO- SA315-P1.100
Name the assertions for the following audit procedures:
1. The title deeds of the lands disclosed in the Balance Sheet are held in the name of the company.
2. Depreciation has been properly charged on all assets.

3. Year-end inventory verification
4. All liabilities are properly recorded in the financial statements.
5. Related party transactions are shown properly.
Answer 1. The title deeds of the lands disclosed in the Balance Rights and Obligations Assertions

Sheet are held in the name of the company

2. Depreciation has been properly charged on all assets Valuation Assertions
3. Year-end inventory verification Existence Assertions

4. All liabilities are properly recorded in the financial Completeness
statements
5. Related party transactions are shown properly Presentation and Disclosure

QNO Identifying Assertions of financial item (P&M) Old Course -- (M16M/N18E/M21M/ M19M)
315.23 Bhaskar CNO- SA315-P1.100
"Assertions in the following case:
Particulars Amount(Rs.) Amount(Rs.)
Plant and Machinery (at cost) 2,00,000
Less: Depreciation till the end of previous year 70,000
Depreciation for the year 13,000
83,000
1,17,000"

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