Revenue
Financial statement users would need assurance that revenue recorded actually exists because it enables shareholders in the firm to ascertain the profits and the dividends that would be apportioned to them. Revenue has to be recorded in the period within which it was earned and then be matched with the costs incurred in generating the revenue. The assertions of occurrence and existence are imperative to auditors as they align their views with the financial accounting standards board (FASB) and the Auditing Standards Board (ASB). Creating this linkage ensures that a true and fair report of the performance of the business organization under analysis can be presented to the financial statement users.
Rights and Obligations
Current Liabilities; the users of the financial statements ought to have adequate information concerning the validity of the obligations that the company has stated on the balance sheets or the trial balance. Having complete information on the sources of such obligations enables investors and other users of such financial information to make valid and well-thought-out decisions.
Completeness
Financial disclosures; auditors have a duty to ensure that financial information presented is complete with all financial disclosures or footnotes. These footnotes provide additional qualitative information that could not be presented in the main financial statements, such as stating the accounting basis used or the mode of inventory valuation.
Valuation or Accuracy
Expenses; the auditors have a duty of ensuring that expenses and revenue are allocated within the period in which they concurrently occurred. This prevents overstating or understating the profits of the firm and gives fair information to the financial statement users.
Presentation and Disclosure
Long-term debts; the auditor has to make it clear to financial statement users that information on long-term debts is well presented and classified appropriately. This will ensure that users make economic decisions effectively.