LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Sa 330 - what is assertion level and financial statement level

Manish Savani (Student) (56 Points)

17 December 2015

Pls help me to understand meaning in simple words of Assertion Level & Financial Statement Level which is used in SA 330. I could not understand the standard because of this two terms frequently used in SA 330. Pls help me. Thanking You

Reply
Follow
Share

4 Replies

CA Prateek Garg (CA in Practice) (1444 Points)
Replied 18 December 2015

To understand these terms you have to first study the SA 315. According to SA 315, Auditor shall identify and assess the risk of material misstatement –

a. At the financial statement level and

b. At the assertion level for Class of transaction, A/c balance and disclosure.

Meaning of Assertion

Assertion is 'representation by management in the financial statement'.

For E.g. when you see Rs. 500000/- against Fixed Asset in Balance sheet it is an assertion made by management. likewise all the balances in Balance sheet, Profit and Loss A/c or disclosures made in notes are various assertions made by management.

Meaning of Risk at Financial Statement Level and Assertion Level

1. Those Risk which can affect the all the assertion made in the financial statement are Risk @ Financial Statement.

2. Those risks which affect any assertion in particular (and not entire financial statement) are Risk @ Assertion level

7 Like