Final answer:
The 4 management assertions in Presentation & Disclosure are Occurrence, Completeness, Accuracy, and Classification. They help ensure the financial statements are free from material misstatement and provide a framework for reliability.
Step-by-step explanation:
Management Assertions in Presentation & Disclosure
The 4 management assertions in the Presentation & Disclosure category are incredibly vital for ensuring the accuracy and completeness of financial statements. They serve as a part of the financial statement audit process and provide assurance that the statements are free from material misstatement. These assertions are:
- Occurrence - Transactions and events that have been recorded have occurred and pertain to the entity.
- Completeness - All transactions and events that should have been recorded have indeed been recorded.
- Accuracy - Amounts and other data relating to recorded transactions and events have been recorded appropriately.
- Classification - Transactions and events have been recorded in the proper accounts.
Understanding these assertions helps auditors assess the risk of misstatement and provides the users of financial statements a framework to better understand the reliability of the presented financial information.