Audit Assertions – NBC Institute

AA – Nov 2024 – L2 – Q3b – Audit Assertions for the Income Statement

Explain two key audit assertions for the income statement.

Question

Audit assertions are claims made by management regarding the accuracy and completeness of various elements of financial statements. These assertions are used by auditors to develop audit procedures and gather evidence to support their audit opinion. Assertions are categorised into those related to the income statement and those related to the statement of financial position.

Required:
Explain TWO key Audit Assertions for the Income Statement.

Answer

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Tags: Audit Assertions, Audit evidence, Financial Reporting, Financial Statements, Income Statement, Substantive Testing
Level: Level 2

Topic: Audit and Assurance Evidence
Series: Nov 2024

AA – May 2021 – L2 – Q2 – Risk Assessment and Internal Control

Analysis of substantive procedures, risk assessment purposes, and categories of audit assertions.

Question

Your partner invited you and other colleagues to a pre-audit meeting and informed you that the audit of Why Worry Agro Chemical Company Limited will soon commence. He stated that based on experience, the internal control system is not reliable. Therefore, it will be a transaction-based audit approach involving a high level of substantive testing.

He further informed the engagement team that arrangements will be made for a brainstorming session on risk assessment and how to address the risk, using relevant audit assertions. The internal specialists on information technology and tax were invited to the meeting, and two new audit trainees were attached to you on the audit.

As the proposed audit senior personnel on the audit team:

You are required to explain:

a. Substantive audit procedures (2 Marks)

b. Purpose of risk assessment (6 Marks)

c. Categories of financial statements audit assertions (6 Marks)

d. Examples of substantive testing (6 Marks)

Answer

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Tags: Audit Assertions, Financial Statement Audits, Risk Assessment, Substantive Audit
Level: Level 2

Topic: Risk Assessment and Internal Control
Series: MAY 2021

AA – May 2016 – L2 – Q5c – Audit and Assurance Evidence

This question focuses on the substantive audit procedures for verifying the valuation, completeness, and rights and obligations of property, plant, and equipment.

Question

(c) Describe TWO substantive procedures the external auditor of Okunka should adopt to verify EACH of the following assertions in relation to an entity’s property, plant and equipment:

(i) Valuation
(ii) Completeness
(iii) Rights and obligations.

(Note: Assume that the hospital adopts International Financial Reporting Standards). (6 marks)

Answer

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Tags: Audit Assertions, Audit evidence, Completeness, Property Plant and Equipment, Rights and Obligations, Substantive Procedures, Valuation
Level: Level 2

Topic: Audit and Assurance Evidence
Series: MAY 2016

AA – Mar 2024 – L2 – Q3b – Audit and Assurance Evidence

Identify examples of external confirmations and their corresponding audit assertions.

Question

ISA 500: Audit Evidence identifies seven main testing procedures. One of these is external confirmation.

Required:
i) List FOUR (4) examples of external confirmation. (2 marks)
ii) For each of the examples in (i) above, explain: ONE (1) audit assertion that the external confirmation supports, and ONE (1) audit assertion that the external confirmation does not support. (8 marks)

Answer

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Tags: Audit Assertions, Audit evidence, External Confirmations
Level: Level 2

Topic: Audit and Assurance Evidence
Series: MAR 2024

AA – Nov 2024 – L2 – Q3b – Audit Assertions for the Income Statement

Explain two key audit assertions for the income statement.

Question

Required:
Explain TWO key Audit Assertions for the Income Statement.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Assertions, Audit evidence, Financial Reporting, Financial Statements, Income Statement, Substantive Testing
Level: Level 2

Topic: Audit and Assurance Evidence
Series: Nov 2024

AA – May 2021 – L2 – Q2 – Risk Assessment and Internal Control

Analysis of substantive procedures, risk assessment purposes, and categories of audit assertions.

Question

As the proposed audit senior personnel on the audit team:

You are required to explain:

a. Substantive audit procedures (2 Marks)

b. Purpose of risk assessment (6 Marks)

c. Categories of financial statements audit assertions (6 Marks)

d. Examples of substantive testing (6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Assertions, Financial Statement Audits, Risk Assessment, Substantive Audit
Level: Level 2

Topic: Risk Assessment and Internal Control
Series: MAY 2021

AA – May 2016 – L2 – Q5c – Audit and Assurance Evidence

This question focuses on the substantive audit procedures for verifying the valuation, completeness, and rights and obligations of property, plant, and equipment.

Question

(c) Describe TWO substantive procedures the external auditor of Okunka should adopt to verify EACH of the following assertions in relation to an entity’s property, plant and equipment:

(i) Valuation
(ii) Completeness
(iii) Rights and obligations.

(Note: Assume that the hospital adopts International Financial Reporting Standards). (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Assertions, Audit evidence, Completeness, Property Plant and Equipment, Rights and Obligations, Substantive Procedures, Valuation
Level: Level 2

Topic: Audit and Assurance Evidence
Series: MAY 2016

AA – Mar 2024 – L2 – Q3b – Audit and Assurance Evidence

Identify examples of external confirmations and their corresponding audit assertions.

Question

ISA 500: Audit Evidence identifies seven main testing procedures. One of these is external confirmation.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Assertions, Audit evidence, External Confirmations
Level: Level 2

Topic: Audit and Assurance Evidence
Series: MAR 2024

Question Tag: Audit Assertions

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AA – Nov 2024 – L2 – Q3b – Audit Assertions for the Income Statement

Explain two key audit assertions for the income statement.

AA – May 2021 – L2 – Q2 – Risk Assessment and Internal Control

Analysis of substantive procedures, risk assessment purposes, and categories of audit assertions.

AA – May 2016 – L2 – Q5c – Audit and Assurance Evidence

This question focuses on the substantive audit procedures for verifying the valuation, completeness, and rights and obligations of property, plant, and equipment.

AA – Mar 2024 – L2 – Q3b – Audit and Assurance Evidence

Identify examples of external confirmations and their corresponding audit assertions.

AA – Nov 2024 – L2 – Q3b – Audit Assertions for the Income Statement

Explain two key audit assertions for the income statement.

AA – May 2021 – L2 – Q2 – Risk Assessment and Internal Control

Analysis of substantive procedures, risk assessment purposes, and categories of audit assertions.

AA – May 2016 – L2 – Q5c – Audit and Assurance Evidence

This question focuses on the substantive audit procedures for verifying the valuation, completeness, and rights and obligations of property, plant, and equipment.

AA – Mar 2024 – L2 – Q3b – Audit and Assurance Evidence

Identify examples of external confirmations and their corresponding audit assertions.

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AA – Nov 2024 – L2 – Q3b – Audit Assertions for the Income Statement

Explain two key audit assertions for the income statement.

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AA – May 2021 – L2 – Q2 – Risk Assessment and Internal Control

Analysis of substantive procedures, risk assessment purposes, and categories of audit assertions.

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AA – May 2016 – L2 – Q5c – Audit and Assurance Evidence

This question focuses on the substantive audit procedures for verifying the valuation, completeness, and rights and obligations of property, plant, and equipment.

You're reporting an error for "AA – May 2016 – L2 – Q5c – Audit and Assurance Evidence"

AA – Mar 2024 – L2 – Q3b – Audit and Assurance Evidence

Identify examples of external confirmations and their corresponding audit assertions.

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AA – Nov 2024 – L2 – Q3b – Audit Assertions for the Income Statement

Explain two key audit assertions for the income statement.

You're reporting an error for "AA – Nov 2024 – L2 – Q3b – Audit Assertions for the Income Statement"

AA – May 2021 – L2 – Q2 – Risk Assessment and Internal Control

Analysis of substantive procedures, risk assessment purposes, and categories of audit assertions.

You're reporting an error for "AA – May 2021 – L2 – Q2 – Risk Assessment and Internal Control"

AA – May 2016 – L2 – Q5c – Audit and Assurance Evidence

This question focuses on the substantive audit procedures for verifying the valuation, completeness, and rights and obligations of property, plant, and equipment.

You're reporting an error for "AA – May 2016 – L2 – Q5c – Audit and Assurance Evidence"

AA – Mar 2024 – L2 – Q3b – Audit and Assurance Evidence

Identify examples of external confirmations and their corresponding audit assertions.

You're reporting an error for "AA – Mar 2024 – L2 – Q3b – Audit and Assurance Evidence"

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