What term signifies assertions that have a reasonable possibility of containing a material misstatement that would cause the financial statements to be materially misstated?
A)Relevant assertions
B)Rights and obligations
C)Valuation and allocation
D)Accuracy and valuation

Question

Quizplus · Accepted Answer

Relevant assertions are those that have a reasonable possibility of containing a material misstatement that would cause the financial statements to be materially misstated. This term is used in the context of auditing, where auditors assess the risk of material misstatement in the financial statements and design appropriate audit procedures to address those risks. Rights and obligations, valuation and allocation, and accuracy and valuation are other financial statement assertions that auditors consider in their work, but they do not specifically relate to the risk of material misstatement.

What Term Signifies Assertions That Have a Reasonable Possibility of Containing