NON-CURRENT LIABILITIES

Assertions Audit Objective Audit Procedure

Debt and similar obligations exist  Confirmation of identified
Existence
at the reporting date. liabilities
The Statement of Financial  Omitted liability test
Position includes all debt and  Performing Analytical
Completeness
similar obligations incurred at review procedures to
the reporting date. related accounts.
 Inspecting supporting
Debt and similar obligations are
documents such as invoice
Rights and Obligations legal or specific and definite
and receiving reports.
obligations of the company.
 Inquiry
Non-current liabilities are
recorded in the correct amount.
Cut-off is not usually a major
issue because there is not a
 Test clerical accuracy of
continuous flow of transactions
Accuracy listing of non-current
relating to this account. Tests as
liabilities
to whether the recording takes
place in the correct period are
usually included under existence
and completeness.
Debt and similar obligations are  Re-computations
Valuation presented at the proper  Vouching
amounts.  Tracing
 Reviewing compliance with
Debt and similar obligations are
terms of debts agreements
properly described and classified
Presentation and Disclosure  Evaluating proper financial
and related disclosures are
statement presentation and
correct.
adequacy of disclosure
CURRENT LIABILITIES
Assertions Audit Objective
Current liabilities are valid
Existence obligations to the suppliers at
the reporting date.
Current liabilities include all
Completeness obligations owed to the suppliers
at the reporting date.
Transactions giving rise to the
Occurrence current liability occurred during
the period under audit.
Current liabilities are obligations
Rights and Obligations
owed by the company.
Current liabilities are recorded in
Accuracy
the correct amount and period.
Current liabilities are presented
Valuation
at the appropriate amount.
Current liabilities are properly
described and classified in
Presentation and Disclosure
statement of Financial Position
and their disclosures are correct
Audit Procedure
 Confirming liabilities to
debtors
 Vouching
 Out-of-period liability
search also known as
Omitted liability test.
 Performing purchase and
accounts payable cut –off.
 Select transactions from
Accounts Payable ledger
and agree to supporting
documentation.
 Confirmation from
documents
 Cut-off test
 Casting
 Agree Dirham value of
accounts payable to
supporting documents.
 Re-computation
 Analytical procedures
 Inquiry
 Scanning ledgers for proper
classification and
description.