What are relevant assertions?
A)relevant assertions are the assertions related to the income statement or balance sheet account that must be correct if the auditor says the financial statements are materially correct
B)relevant assertions are the assertions related to the income statement or balance sheet account that should be correct if the auditor says the financial statements are not materially misstated
C)relevant assertions are the assertions related to the balance sheet account that must be correct if the auditor says the financial statements are materially correct
D)relevant assertions are the assertions related to the income statement account that should be correct if the auditor says the financial statements are materially correct
E)A and B

Question

Quizplus · Accepted Answer

Relevant assertions are the representations made by management about the account balances, transactions, and disclosures in the financial statements. They relate to completeness, accuracy, existence, valuation, and disclosure of the items in the financial statements. They are relevant to both the income statement and balance sheet accounts and must be correct if the auditor says the financial statements are materially correct or not materially misstated. Therefore, both options A and B are correct, making the answer E. Option C is incorrect as relevant assertions relate to both income statement and balance sheet accounts, and option D is incorrect as relevant assertions relate to both material and not materially misstated financial statements.

What Are Relevant Assertions