These assertions are relevant to auditors performing a financial statement audit in two ways.
[1] In developing that conclusion, the auditor evaluates whether audit evidence corroborates or contradicts financial statement assertions.
[3][4] Financial statement assertions provide a framework to assess the risk of material misstatement in each significant account balance or class of transactions.
The PCAOB and the IFAC address this topic in AS 1105[6] (updated from AS 15[7] as of December 31, 2016) and ISA 315, respectively.
[4] The American Institute of Certified Public Accountants identifies the following financial statement assertions:[8]