The document discusses management assertions that are used by auditors to guide the type of audit evidence gathered. The five main assertions are: transactions, occurrence, authorizations, accuracy, and completeness. It then provides objectives related to classes of transactions and ending balance classes in accounts. The next section discusses the elements of quality control for audit firms, including leadership responsibilities, ethical requirements, acceptance and continuance of clients, human resources, monitoring, and engagement performance.

2. VIKNESHWARY
D/O VERAN
10DAT11F2005
KOGILA DEWI
D/O SANDRA
SEGARAN
10DAT11F
SUGUNA D/O
RADHAKRISHNAN
10DAT11F2033
SOBANA D/O
PACHEAPPAN
10DAT11F2037
RUPINI D/O
ARUMUGAM
10DAT11F2024

6.  Management assertions are the assertions by management about the accuracy of
the financial statement components.
 An auditor typically uses these assertions to help guide the type of audit
evidence gathered.
 These assertions are :
 Transactions
 Occurrence
 Authorizations
 Accuracy
 Completeness
 Cut off
Classifications

7.  Objectives related to classes of transactions

8. Management Assertions Transactions – related
audit objectives
Descriptions
Existence or occurrence Occurance Record amount represent
valid transactions
Completeness Completeness All transactions have been
recorded
Accuracy • Accuracy
• Posting and
summarization
• Prices & quantity are
correctly recorded
• Amounts are properly
summarized and record in
master files
Classification Classification Transaction are properly
classified into the correct
accounts
Cut off Timing Amounts are recorded on
correct dates

9.  Objectives related to ending balance classes
in accounts

10. Management Assertions Balance – related Audit
objective
Descriptions
Completeness Completeness All amounts are reflected in the
financial statement
Accuracy Individual amounts are correct &
properly summarized
Valuation or Allocation Classification Financial statement amounts are
properly classified
Cutoff Amounts are recorded in the
proper period
Detail tie - in Summary of individual amounts
agrees with general ledger
Realizable value Amounts are written down where
net realizable value is impaired
Existence Existence Recorded amounts exist

12. 110 – Integrity
120 – Objectivity
130 – Professional competence and due care
140 – Confidentiality
150 – Professional behavior
290 – Independent

13. To comply with relevant laws and regulations
and avoid any action that discredits the
profession.
Because its refrain from any conduct that
might bring discredit to the profession.
Do not allow as, conflict of interest or
under influence of other to override
professional or business judgments.
To be straightforward & honest
in all professional & business
relationship.

14. The fact that this is self evident in the
reporting function must be not obscure
its relevance in respect of other
professional work.
Consists of various means that CA firms
use to engage new clients, other than
accepting new clients that approach the
firm.

15. Is the use of various media, such as
magazines, and radio to communicate
information about the services of the CA
firm
May be similarity defined

16. To maintain professional knowledge
and skill at the level required to ensure
that a client or employer receives
competent professional services based
on current development in
practice, legislation and techniques, and
act diligently and in accordance with
applicable technical and professional
standards.

17. To respect the confidential of information acquired as a
result of professional and business relationship and
, therefore not disclose any such information to third
parties without proper and specific authority, unless
there is a legal or professional right or duty to disclose
nor use the information for the personal advantage.

19.  The MIA , as a member of the ( IFAC ) is committed to the
federations board mission to
serve the public interest.
 It establishing and promoting adherence to high quality,
professional standards.
 International convergence of such standards and speaking
out on public interest issues
( Where the professions expertise is most relevant )

20.  IFAC Board has established the International Auditing and
Assurance Standards Board (IAASB )
 Develops and issues, in the public interest and under its own
authority, high quality standards on auditing, quality control, review,
other assurance and related service and facilitates the convergence
of international and national standards.

21.  MIA is obliged to support the work of IFAC
 Incorporate the International Standards and related Practice
Statements issued by the IAASB into its national standards, or
related other pronouncements
 Assists in the implementation of International Standards and
related Practice

22.  The MIA has determined to adopt the International Standards
as the Malaysian approved standards on quality control, auditing,
review other assurance and related services.
 In the event that a standard contains guidance which is
significantly different from Malaysian law or practice.

23.  A firm should establish a system of quality control designed to provide it with
reasonable assurance.
 A system of quality control consists of policies designed to achieve the above
objectives and the procedures.
 MIA has not yet set specific quality control procedure for CA firm.
 Procedures should depend on such things as the size of the firm, the number of
practice offices, and the nature of the practice

24. Audit firm ( policies and procedures should ensure audits are
properly conduct )
Acceptance and retention of clients
Monitoring of all quality control policies and procedures
Assignment of audit work
Individual audits
The process whereby audit working papers are subject to a detailed
check.
The work has been performed in accordance with the audit
programmed.
Work performed result obtain have been documented
Quality control policies and procedures should be at two levels.
First level : Audit firm
Second level : Individual audits

26. ELEMENTS DESCRIPTION
Leadership Responsibilities for Quality  to promote an internal culture
based on the recognition that quality is
essential in performing engagements.
require the firm’s CEO to assume primary
responsibilty for the firm’s quality control.
Ethical Requirements  to provide the firm with reasonable
assurance that the personnel and the firm
comply with -the fundamental principles of
professional ethics;
-maintain independence in all required
circumstances;
-perform all professional activities with
integrity;
-maintain objectivity in discharging
professional responsibilities.
Acceptance and Continuance of Client’s
Relationship and Engagements
 for deciding whether to accept or continue
an engagement and whether to perform a
particular engagement for the client.
 provide the firm with reasonable assurance
that the likelihood of a relationship with a
client whose management lacks integrity is
minimised.

27. Human Resources  for hiring,assigning personnel to
engagement ,professional
devolopments and advancement
activities which provide reasonable
assurance that:
a) the engagement personnel posess
the appropriate characteristics to
enable them perform
competently.
b) work is assigned to personnel
having the degree of technical
training and proficiency required.
c) personnel participate in general;
engagement-specific continuing
professional education;
professional development
activities that enable them to fulfil
responsibilities assigned;
applicable continuing professional
education required by the
professional bodies and regulatory
agencies.

28. Monitoring  to provide the firm with
reasonable assurance that the
policies and procedures established
by the firm for each quality control
element are appropriately
designed,relevant,effective and
comply with current practice.
Engagement Performance  to provide the firm with reasonable
assurance that the work performed by
engagement personnel meets
applicable,professional
standards,regulatory requirements
and the firm’s quality standards.