Audit assertions
You'll learn what audit assertions are and why they're essential to your audit work. In this 19-minute lesson, we explore how misstatements occur in financial statements—through overstatement, understatement, cut-off errors, and classification issues—and how auditors use assertions to direct their testing and gather
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In this lesson
- 0:00 Audit assertions and misstatement types
- 2:04 Identifying audit risks through analytical procedures
- 5:02 Understanding assertions as audit objectives
- 7:33 Assertions for transactions and balances
- 9:05 Detailed breakdown of transaction assertions
- 10:27 Detailed breakdown of balance assertions
- 14:25 Directional testing and audit procedures
- 17:02 Applying assertions to real audit scenarios
About this lesson
evidence. You'll discover the two key sets of assertions: one for transactions and events (Completeness, Occurrence, Cut-off, Accuracy, Classification, Presentation and Disclosure) and one for balances (Completeness, Obligations and Rights, Valuation, Existence, Presentation and Disclosure). Understanding these assertions is crucial for the AA paper, as you'll need to write audit procedures that clearly target specific assertions and use directional testing to either confirm that items exist or that nothing has been omitted. We work through practical examples showing how to identify audit risks, determine what you're trying to prove, and select procedures that gather the right evidence—skills you'll apply directly in your exam answers.
Duration: 20m
Transcript
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