I've seen so many different & conflicting ones.
Wiley Management representation assertions – COVER-U completeness, cutoff, valuation, existence, rights & obligations, understandability
Wiley FS assertions – PERCV presentation, existence, rights & obligations, completeness, valuation
Assertions for online assurance engagements – online privacy, confidentiality, availability, processing integrity, security
Gleim – “CARE CURV” completeness, accuracy, rights/obligations, existence, classification, cutoff, valuation, occurrence
I understand the first 3. What's “CARE CURV” for? Also why are there 2 “R”s and no “O”s for occurrence?
Where does MD&A come into play? I know it's included in most 10-k at the start. Are there separate engagements to report on MD&A or is it included in every audit & review?
There are so many different assertions it's hard to tell which ones are redundant or for different occasions. Also anyone else find the online one's obnoxious; processing integrity + availability + 3 synonyms of security?
CARE is the management assertions relating to account balances. CURV is management assertions about disclosures. Then completeness, cutoff, classification, accuracy, and occurrence are for transactions.
MD&A is a bit tricky. When doing an audit you don't audit the MD&A section, only the financial statements and the notes, but you'll also review the MD&A to make sure management isn't putting misleading or clearly false information in there.
You can also perform an attest engagement/examination on MD&A separately from an audit of the financials. The guidelines for MD&A are established by the SEC but it still falls under SSAE standards.
There are only six assertions – Completeness, Cutoff, Valuation & Allocation, Existance/Occurance, Rights & Obligations, and Understandability & Classification.
Any other acronyms are there because not all assertions apply to the three types of relevancies (account balances, transactions/journal entries, and presentation & disclosure). Account balances only use CVER, transactions only use COVEU, and presentation & disclosure only use CVRU.
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