Existence Assertion
Accounting glossary · Understand, connect, apply
The existence assertion concerns whether recorded assets, liabilities and equity interests are present at the reporting date.
Example
An auditor selects a recorded machine from the asset register and inspects it on the factory floor.
Remember the difference
Physical inspection can establish that the machine exists. Ownership and valuation require additional evidence.
Browse the accounting glossary · PCAOB reference: AS 1105
Prepared with AI assistance. Examples are fictional and simplified for learning.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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