Final answer:
The statement is false; management does make assertions in financial statements that are required to be tested by auditors according to PCAOB standards. These management assertions cover various categories like existence, completeness, valuation, rights and obligations, and presentation and disclosure.
The correct option is b.
Step-by-step explanation:
The statement 'The PCAOB assertions made by management in financial statements do not include' is false. Management is responsible for the preparation and fair presentation of financial statements,
which includes making assertions that the Public Company Accounting Oversight Board (PCAOB) requires auditors to test during an audit. These management assertions are categories of accuracy that management claims are represented in their financial statements.
They include assertions related to existence or occurrence, completeness, rights and obligations, valuation or allocation, and presentation and disclosure.
Auditors use these assertions to assess the risk of material misstatement and to design audit procedures that are appropriate in the circumstances.
When auditors are testing the financial statements, they are essentially testing whether management's assertions are fairly stated in accordance with the applicable financial reporting framework.
Therefore, management does make assertions that are important for both the preparation of financial statements and for audit purposes.
The correct option is b.