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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 to the income statement and the activity throughout the year. There are five key assertions to assess under transaction & events.

2) Account balances: The balance sheet assertions are referred to as the account balance level of assertions. There are four main assertions related to account balances.

3) Presentation & disclosure: These assertions are related to the presentation of information within the financial statement as well as their accompanying disclosures.


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