So the “assertion level” is the level at which statements are presented as completely true. E.G. Management tells the auditor the financial statements show a true valuation of inventory – management are formally “asserting” this statement as being correct, so we call this at the “assertion level”.

What is assertion level and financial statement level?

Assertions level imply accounts level – you have the risk of undiscovered material misstatement of a single account or group of accounts. When yu speak about audit risk at FS level – you mean that all accounts separately show “true and fair view” but still the overall FS are “misleading”.

What is assertion level risks?

The risk of material misstatement on an assertion level is composed of an assessment of inherent risk and control risk – inherent risk being the auditor’s statement regarding the client’s susceptibility of an assertion to being materially misstated. This is before the consideration of the client’s internal controls.