Question

In Auditing, please provide some examples of financial statement accounts for the Valuation management assertion and the Ownership management assertion.

Answer 1

Management Assertion are claims made by member of management regarding certain aspects of a bussiness...The concept is primarily used in regard to the audit of a company's financial statements,where the auditors rely upon a variety of assertion regarding the bussiness...

Management assertion are the assertion by management about the accuracy of the financial statement component...An auditor typically uses these assertion to help guide the type of audit evidence gathered...

Management assertions in auditing. Accuracy. The assertion is that the full amounts of all transactions were recorded, without error. Classification. The assertion is that all transactions have been recorded within the correct accounts in the general ledger. Completeness. Cutoff. Occurrence.

Example of valuation of management assertion

When someone makes a statement investing his strong belief in it, as if it is true, though it may not be, he is making an management assertion