PPT On MANAGEMENT ASSERTIONS

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MANAGEMENT ASSERTIONS Presentation Transcript:
1.MANAGEMENT ASSERTIONS

2.Management Assertions

3.General Balance-Related Audit Objectives
Existence
Completeness
Accuracy
Amounts included exist.
Existing amounts are
included.
Amounts included are
stated at the correct
amounts.

4.Realizable
value
Rights and
obligations
Presentation
and
disclosure
Assets are included at
estimated realizable value.
Assets must be owned.
Account balances and
disclosures are presented
in financial statements.

5.How Audit Objectives Are Met
The auditor must obtain sufficient competent
audit evidence to support all management
assertions in the financial statements.
An audit process is a methodology
for organizing an audit.

6.Four Phases of a Financial Statement Audit
Plan and design
an audit approach.
Perform tests of
controls and
substantive tests
of transactions.
Perform analytical
procedures and
tests of details
of balances.
Complete the
audit and issue
an audit report.