Assertions in considering misstatements

Category Assertion Condition

Transaction Occurrence All recorded transactions and events actually took place.
level Completeness All transactions and events that should be recorded have been
assertions recorded.
Accuracy Full amounts of all transactions and events were recorded
without error.
Cutoff All transactions and events were recorded within the correct
reporting period.
Classification All transactions have been recorded in the correct accounts in the
general ledger.
Account Existence All account balances exists for assets, liabilities, and equity.
balance Rights and The entity holds or controls the rights to assets, and liabilities are
assertions obligations the obligations of the entity.
Completeness All reported asset, liability, and equity balances have been fully
reported.
Accuracy, Assets, liabilities, and equity interests have been included in the
valuation and financial statements at appropriate amounts and any resulting
allocation valuation or allocation adjustments have been appropriately
recorded.
Classification Assets, liabilities and equity interests have been recorded in the
proper accounts.
Presentation Presentation For account balances, assets, liabilities and equity interests are
and Other appropriately aggregated or disaggregated and clearly described,
disclosures and related disclosures are relevant and understandable in the
context of the requirements of the applicable financial reporting
framework.

For transactions and events, they are appropriately aggregated or

disaggregated and clearly described, and related disclosures are
relevant and understandable in the context of the requirements
of the applicable financial reporting framework.
Understandabi The information included in the financial statements has been
lity appropriately presented and is clearly understandable.
Accuracy All information disclosed is in the correct amounts, and which
reflect their proper values.
Completeness All transactions that should be disclosed have been disclosed
Rights and Disclosed rights and obligations actually relate to the reporting
obligations entity.
Occurrence Disclosed transactions have indeed occurred.

Principles of Internal Control

Components Principles
Control 1) Management and staff demonstrate personal and professional integrity
Environment and ethical values;
2) Management sets the “tone at the top” (i.e. management’s philosophy and
 Components Principles
operating style);
3) Management establishes an appropriate government organizational
structure;
4) Management and staff exhibit commitment to competence; and,
5) Management establishes human resource policies and practices.
Risk 6) Management identifies and defines appropriate objectives and risk
Assessment tolerance in specific and measurable terms;
7) Management identifies, evaluates and assesses agency’s risks; and,
8) Management determines appropriate response to the identified,
evaluated, and assessed agency’s risks.
Control 9) Management designs control activities which are appropriate, function
Activities consistently according to plan throughout the period, cost effective,
comprehensive, reasonable and directly relate to the control objectives and to
address risks;
10) Management develops control activities which include a range of diverse
policies and procedures; and,
11) Management develops an effective information technology control
activities.
Information & 12) Management develops and maintains reliable and relevant financial and
Communication non-financial information;
13) Management communicates information throughout the agency; and,
14) Management communicates information with external parties.
Monitoring 15) Management establishes and operates activities to monitor the internal
control system and evaluates the results; and,
16) Monitoring activities ensure that audit findings and recommendations are
adequately and promptly resolved.