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Chapter 6 3 4

Financial statement assertions

Assertions about Transactions that have been
classes of Occurrence recorded have occurred and pertain
transactions and to the entity.
events, and related
disclosures, for the Completeness All transactions that should have
period under audit been recorded have been recorded
Amounts have been recorded
Accuracy
appropriately
Transactions have been recorded in
Cut-off
the correct accounting period.

Transactions have been recorded in
Classification
the proper accounts
Transactions and events are
appropriate aggregated and clearly
Presentation
described, and related disclosures
are relevant and understandable

Assertions about Existence Assets, liabilities and equity interest
account balances, exist.
and related
disclosures, at the Rights and The entity owns the assets, and
period end obligations liabilities are the obligations of the
entity.

All assets, liabilities and equity
Completeness interests that should have been
recorded have been recorded.
Assets, liabilities and equity interests
Accuracy, valuation are included in the financial
and allocation
statements at appropriate amounts.

Assets, liabilities and equity interests
Classification have been recorded in the proper
accounts

Presentation Assets, liabilities and equity interests
are appropriate aggregated and
clearly described, and related
disclosures are relevant and
understandable

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