ACCA Audit and Assurance (F8) Practice Exam 2026 – The Complete All-in-One Guide to Achieve Exam Success

The key assertion for long-term liabilities is completeness. This assertion addresses whether all long-term liabilities that exist at the reporting date have been recorded in the financial statements. Completeness is crucial because it ensures that the financial statements reflect all obligations of the entity, thereby providing a true and fair view of its financial position.

Completeness is particularly important for long-term liabilities as failure to recognize or disclose these obligations might lead to an overstatement of equity and assets, potentially misleading stakeholders about the company’s financial health. For auditors, verifying completeness involves checking that all borrowing agreements, lease obligations, and other long-term debts have been identified and properly recorded.

While other assertions such as confidentiality, timeliness, and control over cash flows are relevant in various contexts, they do not specifically address the risk of liabilities being omitted from the financial statements, which is the primary concern for auditors when evaluating long-term liabilities. Therefore, completeness stands out as the key assertion in this scenario.