The five management assertions outlined in generally accepted auditing standards include all of the following except: A) rights and obligations. B) materiality. C) existence and occurrence. D) presentation and disclosure. E) valuation or allocation.

Question

Quizplus · Accepted Answer

Materiality is a concept in accounting and auditing, but it is not one of the five management assertions. The five management assertions are existence or occurrence, completeness, rights and obligations, valuation or allocation, and presentation and disclosure. Materiality relates to the significance of transactions and their impact on financial statements, guiding what is necessary to disclose or correct.

The Five Management Assertions Outlined in Generally Accepted Auditing Standards