Document ID: chunk:federal_register_of_legislation:F2023C01130:body:0:p59
Version: federal_register_of_legislation:F2023C01130
Segment Type: other
Provision Reference: 
Character Range: 172316–175771

(i)                 Occurrence—transactions and events that have been recorded or disclosed have occurred, and such transactions and events pertain to the entity.

(ii)               Completeness—all transactions and events that should have been recorded have been recorded, and all related disclosures that should have been included in the financial report have been included.

(iii)             Accuracy—amounts and other data relating to recorded transactions and events have been recorded appropriately, and related disclosures have been appropriately measured and described.

(iv)             Cut-off—transactions and events have been recorded in the correct accounting period.

(v)                Classification—transactions and events have been recorded in the proper accounts.

(vi)             Presentation—transactions and events are appropriately aggregated or disaggregated and clearly described, and related disclosures are relevant and understandable in the context of the requirements of the applicable financial reporting framework.

(b)                Assertions about account balances, and related disclosures, at the period end:

(i)                 Existence—assets, liabilities and equity interests exist.

(ii)               Rights and obligations—the entity holds or controls the rights to assets, and liabilities are the obligations of the entity.

(iii)             Completeness—all assets, liabilities and equity interests that should have been recorded have been recorded, and all related disclosures that should have been included in the financial report have been included.

(iv)             Accuracy, valuation and allocation—assets, liabilities and equity interests have been included in the financial report at appropriate amounts and any resulting valuation or allocation adjustments have been appropriately recorded, and related disclosures have been appropriately measured and described.

(v)                Classification—assets, liabilities and equity interests have been recorded in the proper accounts.

(vi)             Presentation—assets, liabilities and equity interests are appropriately aggregated or disaggregated and clearly described, and related disclosures are relevant and understandable in the context of the requirements of the applicable financial reporting framework.

A191.      The assertions described in paragraph A190(a)‒(b) above, adapted as appropriate, may also be used by the auditor in considering the different types of misstatements that may occur in disclosures not directly related to recorded classes of transactions, events or account balances.
Example:

An example of such a disclosure includes where the entity may be required by the applicable financial reporting framework to describe its exposure to risks arising from financial instruments, including how the risks arise; the objectives, policies and processes for managing the risks; and the methods used to measure the risks.

Considerations Specific to Public Sector Entities

A192.      When making assertions about the financial report of public sector entities, in addition to those assertions set out in paragraph A190(a)‒(b), management may often assert that transactions and events have been carried out in accordance with law, regulation or other authority.  Such assertions may fall within the scope of the financial report audit.

Risks of Material Misstatement at the Financial Report Level (Ref: Para. 28(a) and