Which assertions may be tested for the "presentation and disclosure" category of management assertions?
A) Existence, rights and obligations, cutoff and classification, completeness, accuracy and valuation.
B) Occurrence, rights and obligations, existence, accuracy and valuation, cutoff and classification.
C) Occurrence, completeness, classification and understandability, cutoff and classification.
D) Occurrence, rights and obligations, completeness, classification and understandability, accuracy and valuation.

Question

Quizplus · Accepted Answer

The "presentation and disclosure" category of management assertions may be tested for the following assertions:
- Occurrence: all transactions disclosed actually occurred and pertain to the entity
- Rights and obligations: the entity has legal rights to the assets and liabilities disclosed and obligations to pay any liabilities
- Completeness: all necessary disclosures and information are included in the financial statements
- Classification and understandability: all disclosures are labeled and presented clearly and appropriately
- Accuracy and valuation: all disclosures are accurate and valued appropriately. 
Therefore, option D covers all the necessary assertions.

Which Assertions May Be Tested for the "Presentation and Disclosure