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management assertion
definitions of management assertions by category
Question | Answer |
---|---|
Transactions and events that have been recorded have occurred and pertain to the entity (sometimes referred to as validity) | Occurrence |
All transactions and events that should have been recorded have been recorded | Completeness |
All transactions and events that should have been properly authorized | Authorization |
Amounts and other data relating to recorded transactions and events have been recorded appropriately and properly accumulated from journals and ledgers. | Accuracy |
Transactions and events have been recorded in the correct accounting period | Cutoff |
Transactions and events have been recorded in the proper accounts | Classification |
Assets, Liabilities, and equity interests exist | Existence |
The entry holds or controls the right to assets, and liabilities are the obligations of the entity. | Rights and obligations |
All assets, liabilities and equity interests that should have been recorded have been recorded. | Completeness |
Assets, liabilities, and equity interest are included in the financial statements at appropriate amounts, and any resulting valuation or allocation adjustments are appropriately recored | Valuation and Allocation |
Disclosed events, transactions, and other matters have occurred and pertain to the entity. | Occurrence and rights and disclosure |
All disclosures that should have been included in the financial statements have been included | Completeness |
Financial information is appropriately presented and described, and disclosures are clearly expressed | Classification and understandability |
Financial and other information are disclosed fairly and at appropriate amounts | Accuracy and valuation |