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)

1. Completeness
2. Accuracy
3. Cut-off
4. Presentation

1.Existence
2. Ownership (Rights and Obligations)
3. Completeness
4. Valuations

1. Existence
2. Valuation
3. Completeness
4. Ownership (Rights and Obligations)
5. Presentation (Presentation and Disclosure)

1.Ownership (Rights and Obligations)

2. Completeness
3. Valuation
4. Presentation (Presentation and Disclosure)
Explain what is mean by these assertions and why
it is relevant to the account balance

1. Completeness – The complete expense has been

captured
2. Accuracy – The expense has been accurately
captured
3. Cut-off – the expenses for the cut-off period for
the period to be audited is correctly captured in the
correct accounting period
4. Presentation – It is presented and disclosed in the
correct way as per the Accounting Standards along
with the necessary disclosures

1. Existence - The cash at bank exists (tested via

bank confirmations)
2. Ownership - The rights and obligations for the
Cash is clear
3. Completeness - The cash at bank is captured in its
entirety for that legal entity
4. Valuation - If any valuation is required then it is
performed (such as foreign currency bank accounts)

1. Existence - The plant and property exist

2. Valuation - The valuation needs to be established
including depreciation and impairment if any
3. Completeness - The plant and property assets are
captured in its entirety for that legal entity
4. Ownership - If any Rights and Obligations are at
stake then that needs to be established
5. Presentation - The presentation and disclosure in
the Balance Sheet should be as per the Accounting
Standards

1. Ownership - The rights and obligations for the

loans should be established in the audit
2. Completenes - The loan payable is captured in its
entirety for that legal entity
3. Valuation - The valuation for that loan including
interest payable or outstanding if any should be
captured
4. Presentation - The presentation and disclosure
should be correctly captured including the short
term payable and long term payables as per the
disclosure and compliance requirements of the loan
conditions along with the Accounting Standards