CapitalBanc Corporation case 2.4 1- Management assertion is a set of information that the management provided it to the auditor‚ so the auditor will make sure there are no material misstatements. According to AU 326‚ paragraph 3‚ management assertions can be either explicit or implicit and can be classified according to three categories: Assertions about transactions‚ assertions about accounts balance‚ and assertions about presentation and disclosure. The auditor has to keep in mind that the
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Case 2.4 CapitalBanc Corporation 1. When auditing cash‚ which of the management assertions discussed in SAS No. 106‚ “Audit Evidence‚” are of primary concern to the auditor? Why? When auditing cash‚ there are a number of management assertions discussed in SAS No. 106 that are of primary concern to auditors. Existence: Auditors must make sure that the cash being audited exists. In the CNB case‚ the cash that was apparently locked away in the cabinet did not exist until money was borrowed
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