ACCA Audit and Assurance (F8) Practice Exam 2026 – Comprehensive Preparation Guide

The assertion related to the existence of Tangible Non-Current Assets is that the assets recognized in the financial statements are indeed present and accounted for. This assertion is crucial during an audit, as it tests whether the assets listed on the balance sheet physically exist and whether the organization has legal rights to them.

When auditors focus on existence, they verify that the reported assets are not merely fictitious entries and can be substantiated with evidence, such as inspection of the assets themselves or examination of relevant documentation. This ensures that the financial statements provide a true and fair view of the company’s financial position.

The other options relate to different assertions. Valuation concerns the accurate and fair representation of the asset's value in financial statements, maintenance records pertain to the operational aspects and can affect assets' condition, and authorization of disposals pertains to the control processes surrounding the asset lifecycle. However, these do not specifically address the key aspect of whether the assets physically exist.