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i) Completeness
Ensure that the transactions have been processed completely using the accounting system Ensure
that the balances have been disclosed in the books of accounts completely Confirm that all assets
and liabilities have been recorded and disclosed completely
ii) Rights and obligations
Ensure that the assets are the rights of the company and liabilities are the obligation of the
company.
iii) Accuracy
Obtain evidence that the account balances have been recorded accurately
Check for the arithmetical accuracy of the transactions, additions and subtractions involved and
ensure that the amounts in words do agree with the amount in figures.
iv) Cut-off
Ensure that all disclosures in the financial statement are relating to the period in which they are
incurred and no part of the disclosure has been done twice.
v) Understandability
Obtain evidence that all the account Balances included in the books of accounts are properly
understandable by the management and employees.
vi) Classification
Ensure that a transaction has been classified appropriately in the books of accounts and confirm
the classification to be either asset or liability.
Kavungya answered the question on May 14, 2019 at 13:30
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