For the Period 1 July 2020 – 30 June 2021

Account Value (‘000)

Interest expense $500

Cash at bank $5,000

Property Plant and Equipment $50,000

Loans payable $25,000

Key Assertion/s (C, E, A, V, O, P)

Valuation
Accuracy

Valuation

Ownership

Existence

Completeness

Cut-off
Explain what is mean by these assertions and
why it is relevant to the account balance
Recalculate the interest expense to confirm the
valuation.
Cast the company's bank reconciliation to
check the additions to ensure the accuracy.
Check the amount in the bank confirmation to
the amount recorded in the balance sheet.
Inspect the documentation of title for the
assets such as title deed, purchase invoices,
contracts and confirm they are in the name of
the company.
Physically verify a sample of the new NCA with
the NCA registers to confirm existence.
Enquire of manage their process for identifying
goods received but not invoiced or logged in
the purchase ledger to ensure completeness of
payables.

Select a sample of goods received notes before

the year end and after the year end and follow
through to inclusion of the liability in the
correct period's payables balance to ensure
correct cut-off.