Best Occurrence Audit Assertion

Occurrence tests whether the fixed-asset transactions actually took place.

Occurrence audit assertion. As auditors we perform the audit of revenue by testing various audit assertions including occurrence completeness accuracy and cut-off. Similarly tracing form wages to HR record will give evidence of occurrence or at least that the employee is genuine but that will not give you evidence that every employee appears on the wages records as again a missing employee will not be in the wages records so you will not spot. This assertion means that all the recorded transactions actually.

Assertions are an important aspect of auditing. The difference is that occurrence is for income statement transactions while existence is for balance sheet items. Transactions that have been recorded by the company actually occurred and pertained to the company.

Conditions to be satisfied as wellThe aim of this Practical Guidance is to provide auditors with some guidance when auditing the. Since financial statements cannot be held to a lie detector test to determine whether they are factual or not other methods must be used to establish the truth of the financial statements. Therefore the audit team needs to test the occurrenceexistence assertion to assess whether all of the sales recorded actually exist.

The types of tests that can be performed will vary by company but the audit team will generally send confirmations to customers examine invoices or vouch customer payments to the bank statement. Assertions about classes of transactions and events for the period under audit Occurrence recor ded transactions and events have occurred and pertain to the entity Completeness all transactions and events that should have been recorded have been recorded. Audit Assertions are the implicit or explicit claims and representations made by the management responsible for the preparation of financial statements regarding the appropriateness of the various elements of financial statements and disclosures.

Transactions or events recorded actually occurred during the accounting period. It will however help with occurrence because you want evidence that wages are based on actual hours worked. Audit Assertions are also known as Management Assertions and Financial Statement Assertions.

Existence assertion is very closely related to occurrence assertion. Items recorded actually exist at the balance sheet date. 8 rows Existence or occurrence.