(c) Tangible non-current assets – assertions
– Completeness – ensure that all non-current assets are recorded in the non-current asset register by agreeing a sample of assets physically verified back to the register.
– Existence – ensure non-current assets exist by taking a sample of assets from the register and physically seeing the asset.
– Valuation and allocation – ensure assets are correctly valued by checking the reasonableness of depreciation calculations.
– Rights and obligations – ensure the company owns the asset by seeing appropriate document of ownership for example, a purchase invoice.
– Presentation and disclosure assertions – ensure all necessary financial statements disclosures have been made by reviewing the financial statements and ensure non-current assets are correctly categorised in those financial statements.
Note: only four assertions were required.
|
