2.

Assertion
a

Completeness

Accuracy & Valuation

Accuracy

Presentation &
Disclosure

Valuation & Allocation

Presentation &
Disclosure

Existence

Completeness

Account for the numerical sequence of

inventory purchase requisitions- to
ascertain that none are missing, thereby
helping to assure that no unauthor ized
purchases were made
Transactions, events, balances and
other financial matters have been
disclosed accurately at their appropriate
amounts
Amounts at which assets, liabilities and
equity interests are valued, recorded
and disclosed are all appropriate. The
reference to allocation refers to matters
such as the inclusion of appropriate
overhead amounts into inventory
valuation.
Descriptions and disclosures of assets
and liabilities are relevant and easy to
understand. The points made above
aggregation and disaggregation of
transactions also apply to assets,
liabilities and equity interests.
Transactions, events, balances and
other financial matters have been
disclosed accurately at their appropriate
amounts
Descriptions and disclosures of assets
and liabilities are relevant and easy to
understand. The points made above
aggregation and disaggregation of
transactions also apply to assets,
liabilities and equity interests.
This means that assets, liabilities and
equity interests (capital and reserves)
are physically present/belong to the
entity on the reporting date.
Account for the numerical sequence of
inventory purchase requisitions- to
ascertain that none are missing, thereby
helping to assure that no unauthorized
purchases were made

Transaction
Cycle
Production

Audit
Objective
Transactions
and events

Finance
Investment

Transactions
and events

Production

Transactions
and events

Acquisition
and
disbursement
s

Presentation &
Disclosure

Acquisition
and
disbursement
s
Payroll and
personnel

Presentation &
Disclosure

Acquisition
and
disbursement
s
Revenue and
collection

Account
Balance

Presentation &
Disclosure

Presentation &
Disclosure

Rights & Obligations

Presentation &
Disclosure

Valuation & Allocation

Presentation &
Disclosure

Rights & Obligations

Completeness

Existence

a.

This means that the entity has a right to

its assets ie it is free to use or dispose
of the assets as it sees fit. Furthermore,
the entity is obliged to pay off the
liabilities that are shown in the
statement of financial position.
Descriptions and disclosures of assets
and liabilities are relevant and easy to
understand. The points made above
aggregation and disaggregation of
transactions also apply to assets,
liabilities and equity interests.
This means that all items have been
included in the financial statements at
appropriate amounts according to
company policy and the relevant
financial reporting framework.
Furthermore, any allocations or
valuation adjustments required (like
impairment) have been made and
financial and other information is
disclosed fairly and at appropriate
amounts.
Determine whether any inventory has
been pledged - to assure that such facts
are disclosed properly in the financial
statements
Entity has the right to ownership or use
of the recognized assets, and the
liabilities recognized in the financial
statements represent the obligations of
the entity
Transactions recognized in the
financial statements have occurred and
relate to the entity
This means that assets, liabilities and
equity interests (capital and reserves)
are physically present/belong to the
entity on the reporting date.

Payroll and
personnel

Account
Balance

Acquisition
and
disbursement
s

Presentation &
Disclosure

Finance
Investment

Account
Balance

Production

Presentation &
Disclosure

Acquisition
and
disbursement
s

Presentation &
Disclosure

Payroll and
personnel

Account
balance

Revenue and
collection

Transaction