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AUDIT EVIDENCE (II)
Chapter 16
THE FINAL AUDIT – THE ASSERTIONS 
REVISITED
1. Introduction
We now come to look at the final audit and consider some of the work that is typically done to verify 
some of the assertions that are made about major items in the client’s financial statements. 
This part of the audit is still sometimes referred to as the ‘balance sheet audit’ because it tries to 
ensure directly that the amounts in the financial statements are free from material misstatement. 
In particular, ISA 315 states:
“…management…makes assertions regarding the recognition, measurement and presentation of 
classes of transactions and events, account balances and disclosures. Assertions used by the auditor 
to consider the different types of potential misstatements that may occur fall into the following two 
categories ..."
2. Assertions about classes of transactions and events and 
related disclosures
These assertions relate to the 
period under audit
:
๏
Occurrence
– 
transactions and events that have been recorded or disclosed 
have occurred and pertain to the entity. 
๏
Completeness
– 
all transactions and events that should have been recorded/
disclosed have been recorded/disclosed.
๏
Accuracy
– 
amounts have been recorded appropriately and related 
disclosures have been properly measured and described. 
๏
Cut-off
– 
transactions and events have been recorded in the correct 
accounting period. 
๏
Classification
– 
transactions and events have been recorded in the proper 
accounts.
๏
Presentation
– 
transactions and events are appropriately aggregated (or 
disaggregated) and clearly described. Related disclosures are 
relevant and understandable.