What are audit assertions?

Question

What are audit assertions, and why are they important during a financial statement audit? I’d like to understand the main types of assertions auditors consider when reviewing financial information.

Richer · Answer

An audit assertion is a claim made by management concerning information contained in the financial statements. The auditor then tests such assertions in order to ascertain if the information in the statements is true or not. Examples of assertions are existence, completeness, accuracy, valuation, rights and obligations, and presentation and disclosure.

Madeline · Answer

They're basically the claims management makes in the financial statements, like existence, completeness, accuracy, valuation and rights. Auditors test each one to see if the numbers can be trusted.

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