Final answer:
The question refers to the principles of accuracy and full disclosure in financial reporting, which are critical to trustworthiness and transparency in financial statements and footnotes.
Step-by-step explanation:
When management asserts that all transactions and events have been presented correctly, and that all relevant information has been disclosed to financial statement users, usually in the footnotes, it is focusing on the principles of accuracy and full disclosure in financial reporting. Financial statements must present a comprehensive understanding of the company's financial situation, and they must be prepared with awareness of the audience, context, and community expectations.
Financial statements must have an appropriate presentation for the content, and the language used should be clear and objective to maintain trustworthiness. Providing correct citations and disclosures in the footnotes ensures transparency and aids users in making informed decisions based on the financial information provided.