MCAA U1DB2 initial

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MCAA – U1DB2 initial
Generally, an audit has several objectives. However, the main one is to assess the misstatements in the audit. These material misstatements arise from numerous cases of inadequacies that are in management. Inaccuracy assertion is common in organizations. Hence, it is crucial to test for the validations of management assertions (Messier et al. 35). Knowing that Bovary will have an inventory circle, there needs to be a plan that sets the objectives. The audit has to have requirements that are specific to the company. Management assertion is implied representations of the balances in the account and disclosures in the statement (Wallage, 57).
The auditing standards demand that the auditors have to test the primary underlying assertions for management of its status. The key to this is the existence or the occurrence. This describes the concept of singularity. Hence the entries done in the journals are frictionless. Here, the auditors have to conduct procedures that verify that these are assets that are existing. There has to be a proof that a transaction occurs.
Regarding existence, the assets and liabilities have to be proven that they exist. Also, there must be a proof that the transactions have taken place through the defined period (Peecher et al. 463).
When it comes to completeness, all the transactions in the company have to be presented in the statements that are presented. Hence, the record has to be complete. By valuation, all the assets, liabilities and expenses must be accurately represented, and the amounts involved are appropriate.

Regarding the rights and obligations, the records have to show that the company holds the rights to control all the assets on the given date. The presentation and disclosure demand that records for auditing have to be disclosed. All the financial statements have to be correctly described in terms of their classification.

Works cited
Messier, William F., Steven M. Glover, and Douglas F. Prawitt. Auditing & assurance services: A systematic approach. Boston, MA: McGraw-Hill Irwin, 2008.
Peecher, Mark E., Rachel Schwartz, and Ira Solomon. “It’s all about audit quality: Perspectives on strategic-systems auditing.” Accounting, Organizations and Society 32.4-5 (2007): 463-485.
Wallage, Philip. “Assurance on sustainability reporting: An auditor’s view.” Auditing: A Journal of Practice & Theory 19.s-1 (2000): 53-65.