Which of the following statements concerning financial statement assertions is false?
A)They are the claims management makes in presenting its financial statements.
B)Their appropriate application is determined in reference to GAAP,or the disclosed basis of accounting.
C)They are directly tied to the audit objectives auditors use to design specific evidence-gathering procedures.
D)They must be fully disclosed in the notes to the financial statements.

Question

Quizplus · Accepted Answer

Financial statement assertions do not have to be fully disclosed in the notes to the financial statements. The assertions are used by auditors to assess the risks of material misstatement in the financial statements and to guide their audit procedures. The notes to the financial statements may provide additional context or explanations for the assertions, but they are not required to disclose them in full.

Which of the Following Statements Concerning Financial Statement Assertions Is