Management assertions are:
A) explicitly expressed representations about the financial statements.
B) provided to the auditor in the assertions letter, but are not disclosed on the financial statements.
C) stated in the footnotes to the financial statements.
D) implied or expressed representations about classes of transactions and the related accounts in the financial statements.

Question

Quizplus · Accepted Answer

Management assertions are implied or expressed representations about classes of transactions and the related accounts in the financial statements. They help auditors in their assessment of the risks of material misstatement and in designing appropriate audit procedures. Management assertions are not explicitly expressed representations about the financial statements, nor are they provided in a separate assertions letter or stated in the footnotes to the financial statements.

Management Assertions Are