Management assertions are:
A) provided to the auditor in the assertions letter, but are not disclosed on the financial statements.
B) explicitly expressed representations about the financial statements.
C) stated in the footnotes to the financial statements.
D) implied or expressed representations about classes of transactions and the related accounts in the financial statements.

Question

Quizplus · Accepted Answer

Management assertions are implied or expressed representations by management about classes of transactions, related accounts, and disclosures in the financial statements. They are not typically provided in a separate assertions letter, explicitly stated in the financial statements, or detailed in the footnotes. Instead, they form the basis upon which financial statements are prepared, ensuring completeness, accuracy, and validity of the information presented.

Management Assertions Are