The Management of an organization has the responsibility of preparing the accounting records, in which they make assertions regarding their financial statements.

A small business owner is not clear on the meaning of the term financial statement assertion. As

a junior auditor you are asked to:

A. Explain the term ‘financial statement assertion’.

B. Explain any FOUR (4) assertions contained in the financial statement.

C. Describe any THREE (3) components of the internal control system.

D. Explain TWO (2) types of internal control principles.