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John Mark
John Mark, Accountant
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Auditing Question... What are the key management assertions

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Auditing Question...

What are the key management assertions related to long-term assets and liabilities? What are the most important assertions related to long-term assets and liabilities? How will auditors test these assertions?
Submitted: 6 years ago.
Category: Finance
Expert:  John Mark replied 6 years ago.

Audit objectives for long term assets and liabilities:

  1. That they exist and are complete
  2. they are being amortized properly and therefore valued correctly
  3. they are properly classified in the financial statements with adequate disclosure.

 

Audit procedures include

  1. examining documents which created the long term assets/liabilities trace to accounting records
  2. review current year activity in all accounts for unusual activity and vouch to supporting documents
  3. consider impairment of goodwill or similar assets
  4. determine proper financial statement treatment (current and non-current) and disclosure in financial statements
  5. In this and the following procedures, consider whether the results of audit procedures indicate any internal control related matters that should be communicated to management.


Edited by John Mark on 6/30/2010 at 6:00 AM EST
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