Audit and Assurance Associate

Role cheat sheet

Assertions

Existence concerns whether recorded items are real. Completeness concerns omissions. Cut-off concerns the period. Valuation concerns the measurement.

Materiality

Consider the size and nature of an error and its effect on users. A small error can matter when it changes covenant or earnings conclusions.

Controls and substantive tests

Test whether a control operated as designed. Use substantive procedures to obtain direct evidence about amounts or disclosures.

Revenue recognition

Identify the contract and obligations, determine and allocate the price, then recognise revenue as obligations are satisfied.

Review the lesson

Audit evidence

Choose evidence for the specific assertion and assess reliability. External evidence can be stronger, depending on source and circumstances.

Reconciliation and exceptions

Tie source records to the ledger, investigate differences, document evidence and assess whether findings affect other periods or balances.

Practise interview questions