What are the assertions for the transaction & events level?
The transaction & events assertions relate to the income statement and the activity throughout the year. The five key assertions include occurrence, completeness, accuracy, cutoff, and classification.
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What is an assertion in audit?
According to Merriam Webster, an assertion is “a confident and forceful statement of fact or belief”. Basically, management is making assertions on the financial statements, and the audit team is performing audit procedures to test the validity of those assertions.
What are the different audit assertions?
The three main levels are transactions & events (income statement activity) account balances (balance sheet activity), and then presentation & disclosure (information in the financial statements). Each of these assertion levels have management assertions that are important and should be interpreted in a specific manner. 1) Transaction & Events: The transaction & events assertions relate […]