F8: assertion query

mark057
mark057 Registered Posts: 352 Dedicated contributor 🦉
edited June 18 in AAT member discussion
Hello,

I was just hoping somebody could help restore my sanity with this query.

I've just completed a question asking for an example of a confirmation document and what assertion
it would support and NOT support.

I used the example of a receivables circularisation and said it supported completeness but did not
support occurrence.

The answer said it should support existence, which I agree with but said it did not support completeness
or valuation.

I'm totally confused with this answer as how can a recievables circularisation, which confirms balance
not help to support valuation or completeness.

I've even looked in my text and the assertion of completeness is supported by receivables
circularisations.

I'm seriously pis**d off with the Kaplan revision guide as this is far from the first time the answers
have been inconsistent with the text book.

Mark

Comments

  • Rozzi Rainbow
    Rozzi Rainbow Registered Posts: 462 Dedicated contributor 🦉
    Hi Mark

    This is purely off the top of my head but I think the reason it wouldn't support completeness is that you are only circulating receivables that you are aware of, to confirm the correct balances. There may be some receivables you are not aware of, that have been missed from the accounts, so you obviously won't be circulating them. So even if all the circularisations come back and confirm the figure in the accounts, it may still not be complete.
  • Glynis
    Glynis Registered Posts: 488 Dedicated contributor 🦉
    Nothing in this blasted paper is straight forward. I can't believe we only have about a week left and I am not ready in the slightest. I cannot follow any of the concepts, none of the procedures and find the material on the ACCA website confusing to say the least. I couldn't go on the revision course as I had to pay a late exam fee and like you Mark057 am just heartily sick of the whole saga :(
  • mark057
    mark057 Registered Posts: 352 Dedicated contributor 🦉
    Thanks for the Rozzi.

    I fully agree with the fact receivables circularisations do not cover all balances in the receivables ledger. I just though
    that completeness would at least be tested to some degree by the circularisations.

    After all a statutory audits provide only reasonable not absolute assurance.

    I just find the assertions confusing because you could argue it any which way.

    Cheers

    Mark

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