| What are the six Assertions related to Account Balances?
(PACCER) | 1. Existence—Related to the validity of recorded items.
2. Completeness—Related to omissions of amounts that should have been recorded.
3. Rights and Obligations—Related to any restrictions to the entity's rights to their assets or to the obligations for their liabilities.
4. Accuracy, Valuation, and Allocation—Related to the appropriateness of dollar measurements.
5. Classification—Related to the use of appropriate accounts for the financial statement elements.
6. Presentation—Related to the appropriate level of aggregation of financial statement elements and the appropriate disclosures associated with them. |
| AICPA:
There are six assertions about classes of transactions and events during the period (and related disclosures), what are they?
*AICPA standards apply to non-issuers* | TRIPLE C - PAO (acronym)
1. Cutoff
2. Completeness
3. Classification
4. Presentation
5. Accuracy
6. Occurrence |
| PCAOB:
What are the five assertions under this standard?
*PCAOB standards apply to issuers* | PACER (acronym)
1. Presentation
2. Allocation
3. Completeness
4. Existence
5. Rights and Obligation |
| What are the two categories of Assertions for the AICPA standards?
*AICPA standards apply to non-issuers* | Categories of Assertions = Account Balances & Transactions or Events |
| FYI: Assertions on classes of transactions
- Income Statement accounts
(CCC - PAO) | Income statement elements (including revenue and expense items) are primarily audited by Analytical Procedures.
Typically, tests of details will be performed only when the analytical procedures suggest that a risk of material misstatement exists and that a more detailed investigation is warranted. |
| FYI: Assertions on Ending Balances
- Balance Sheet accounts
(PACCER) | Balance sheet accounts are primarily audited by Substantive Procedures usually performed in Every Individual Audit Area |
