Professional Documents
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Audit Programme
Audit Programme
Audit Assertions
As part of the planning stage, auditors need to
prepare audit tests to test the account areas.
To assist the auditors there are 5 audit assertions
for the income and expenditure and 5 audit
assertions for the balance sheet.
Transactions are to be tested in audit with
reference to the audit assertions. Assertions will
be different for different account areas.
Audit Assertions (Contd.)
In respect of Income and Expenditure Accounts, the
assertions are:
Completeness, i.e. All relevant transactions have been
recorded.
Occurrence, i.e. All transactions are stated accurately.
Measurement, i.e. All recorded transactions actually
occurred.
Regularity, i.e. All transactions accord with relevant laws and
regulations.
Disclosure, i.e. All transaction are classified and described in
line with relevant regulations.
Audit Assertions in respect of Income-
Expenditure Accounts
Assertion Questions
TWO TYPES
Observation
Inquiry
Confirmation
Computation
Analytical procedures
Surveys
Interviews
Physical verification
Inspection