Final answer:
According to PCAOB Auditing Standard No. 5 (AS 5), the auditor should identify significant accounts and disclosures and their relevant assertions. The financial statement assertions identified in AS 5 are existence or occurrence, completeness, valuation or allocation, rights and obligations, and presentation and disclosure. The financial statement assertion not explicitly identified in AS 5 is accuracy.
Step-by-step explanation:
According to PCAOB Auditing Standard No. 5 (AS 5), the auditor should identify significant accounts and disclosures and their relevant assertions. The financial statement assertions identified in AS 5 are:
- Existence or occurrence: The assertion that asserts that assets, liabilities, and equity interests recorded in the financial statements exist and have occurred.
- Completeness: The assertion that asserts that all transactions and events that should be recorded in the financial statements have been recorded.
- Valuation or allocation: The assertion that asserts that the assets, liabilities, and equity interests recorded in the financial statements have been included at appropriate amounts and are properly classified, described, and disclosed.
- Rights and obligations: The assertion that asserts that the entity has a legal or beneficial right to the assets and the liabilities representing its obligations to others at the financial statement date.
- Presentation and disclosure: The assertion that asserts that the components of the financial statements are properly classified, described, and disclosed.
The financial statement assertion that is not explicitly identified in AS 5 is Accuracy. Accuracy refers to the assertion that the amounts and other data relating to the financial statements have been recorded appropriately and are appropriately aggregated and summarized in the financial statements.