24 December 2013
There are two level, financial level and assertion level to risk of material misstatement.Assertion level is supplement to preparation of F/s. Assertion level means a point of time where management representation (MR) is obtained. Example, you take MR relating to value of closing stock. Now on plain reading this MR founds to be wrong. Then at that time you are not supposed to rely on this MR excusing yourself that i have obtained MR. So while doing audit assertion level should also be verified.
24 December 2013
There are two level, financial level and assertion level to risk of material misstatement.Assertion level is supplement to preparation of F/s. Assertion level means a point of time where management representation (MR) is obtained. Example, you take MR relating to value of closing stock. Now on plain reading this MR founds to be wrong. Then at that time you are not supposed to rely on this MR excusing yourself that i have obtained MR. So while doing audit assertion level should also be verified.
CAclubindia
