What is management assertion?

Management assertions are claims made by a company's management regarding the accuracy and completeness of financial statements and related disclosures. These assertions serve as the foundation for the independent auditor's evaluation of the financial statements, covering aspects such as existence, completeness, valuation, rights and obligations, and presentation and disclosure. They help ensure that the financial statements present a true and fair view of the company's financial position and performance. Auditors test these assertions to provide reasonable assurance that the financial statements are free from material misstatement.