How Does the Valuation Assertion apply to a Payroll Process? 2008



  • I can see how completeness, existence, accuracy and ownership would apply. Also presentation, but I don’t know if valuation applies. Any thoughts?



  • Hi - As I’m on the IT side, I did some quick research and found the following links. The 2 quotes may also help.
    Please paste to browser and add www
    google.com/search?hl=en-and-q=SOX Valuation Assertion Payroll
    nysscpa.org/cpajournal/2001/0300/features/f033601.htm
    usdoj.gov/oig/reports/USMS/a0429/app6.htm
    Accuracy controls - This most directly relates with the financial statement assertion on valuation or allocation. This assertion deals with whether transactions are recorded at correct amounts. The control category, however, is not limited to financial information, but also addresses the accuracy of other data elements.
    Measure the value of transactions in a manner that permits recording their proper monetary value in the financial statements. This objective concerns the financial statement assertion of valuation or allocation.


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