Reflections on the Concept, Classification and Application of "Assertion" Under the New Standards

Abstract

Continuing to converge with international auditing standards, China revised auditing standards in 2019. The new standard closely follows ISA 315, which revises the classification of "assertion". In auditing practice, certified public accountants need to correctly understand the concept and classification of "assertion", and use "assertion" reasonably to consider different types of potential misstatements that may exist in the entity, so that they can design and implement more targeted auditing. procedures to collect sufficient and appropriate audit evidence. The article sorts out the origin and evolution of the relevant theories of "assertion", combined with the identification and response to the misstatement of "assertion" in the audit practice work of Chinese certified public accountants, summarizes the misunderstanding and application of "assertion", and then from the two levels of theory and practice. Think about the concept, classification and application of "assertion", in order to enlighten the audit practice.