The Broad Categories of Management Assertions Listed in ASA 315

question 69

Essay

The broad categories of management assertions listed in ASA 315 may be grouped together under five headings.One heading is 'existence or occurrence.' Assertions about existence deal with whether assets, liabilities, and equities included in the balance sheet actually existed on the balance sheet date.Assertions about occurrence deal with whether recorded transactions reflected in the income statement actually occurred during the accounting period.Identify and discuss each of the remaining four categories or headings of management assertions.

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Definitions:

Rough Endoplasmic Reticulum

A network of membrane-bound tubules and sacs studded with ribosomes, involved in protein synthesis and folding.

Cell Theory

A fundamental principle in biology stating that all living things are composed of cells, cells are the basic units of life, and all cells come from pre-existing cells.

Physiological Functions

The biological processes and activities carried out by the organs and systems of an organism to maintain life.

Preexisting Cells

The principle that cells are formed from the division of existing cells, as stated in the cell theory.