Financial statement assertions are claims made by an organization's management regarding its financial statements. The assertions form a theoretical basis from which external auditors develop a set of audit procedures.

Who makes financial statement assertions?

The different financial statement assertions attested to by a company's statement preparer include assertions of existence, completeness, rights and obligations, accuracy and valuation, and presentation and disclosure.

What is assertions in audit?

Assertions are claims made by business owners and managers that the information included in company financial statements — such as a balance sheet, income statement, and statement of cash flows — is accurate. These assertions are then tested by auditors and CPAs to verify their accuracy.