Manager
50 Points
Joined July 2009
Audit assertion mean
For BS: Completeness, Right & Obligation, Existence, Valuaion, Presentation and Disclosure
For P&L: Completeness, Occurence, Measurement, Presentation and Disclosure
Each critical accounts in the financial statements are associated with above mentioned assertions and we assess the risk of material misstatement and fraud risk and accordingly we prepare audit program to mitigate risk.
For e.g
For Debtors: risk may be valuation of debtors i.e. recoverability
For Fixed Assets: Existence of FA
Fraus risk may be occurence of revenue, existence of debtors etc. You can refer SA 240 for fraud risk.
Hope it clarifies.
Regards