Assertions are the set of representations by a management team that were incorporated into the financial statements and accompanying disclosures that they produced. Auditors investigate the validity of these assertions as part of their audit procedures. Examples of the assertions are:
- Accuracy. Transactions have been recorded at their actual amounts.
- Classification. Transactions have been appropriately presented within the financial statements and accompanying disclosures.
- Completeness. All transactions that should have been included in the financial statements have actually been included.
- Cut-off. Transactions have been recorded within the correct accounting period.
- Existence. Balance sheet items actually existed as of the balance sheet date.
- Occurrence. The transactions summarized into the financial statements have actually occurred.
- Valuation. All balance sheet items have been stated at their proper values.