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Statement on Auditing Standards No. 31, Evidential Matter, lists five broad categories of assertions embodied in financial statement components. Four of them deal with transactions and accounts that are included in the financial statements; one of them, the completeness assertion, deals with whether there are transactions and accounts that have been improperly excluded from the financial statements. The unique nature of the completeness assertion has caused practice problems in obtaining evidential matter regarding that assertion. This proposed Statement addresses those problems. The auditor should not rely solely on management's written representations as evidential matter regarding the completeness assertion. The auditor should obtain evidential matter regarding the completeness of those types of transactions that he has reason to believe have occurred. The auditor should not rely solely on internal accounting controls over completeness as evidential matter regarding the completeness assertion.
Assets (Accounting) -- Standards -- United States
Accounting | Taxation
American Institute of Certified Public Accountants. Auditing Standards Board, "Proposed statement on auditing standards : Obtaining evidential matter regarding the completeness assertion ;Obtaining evidential matter regarding the completeness assertion" (1984). Statements of Position. 476.