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6. Financial Statement Assertions
Chapter Content Relevant ISAs
Use of management’s assertions in auditing. 315
Exhibit 6.0-1
Combined Assertions Extent of Monetary Error
Correctly stated amount for transaction/balance
Completeness
(missing transactions)
Existence
(invalid transactions)
Accuracy & cutoff
(inaccurate; recording,
cutoff or rights/obligations)
Valuation
(recorded at incorrect value)
Understated Overstated
+
-
6.1 Overview
Paragraph # Relevant Extracts from ISAs
Assertions
315.4(a) Assertions—Representations by management, explicit or otherwise, that are embodied in
the financial statements, as used by the auditor to consider the different types of potential
misstatements that may occur.
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