Management Assertion Conceptually, management makes assertions about the financial statements. (1) Define, or explain, what is meant by management assertions. (2) How does the concept of management assertions help the auditor in auditing an entity's financial statements? Discuss. Indicate the most applicable of each of the following assertions. Use only ONE letter for each item. Assertions about Classes of Transactions and Events: Occurrence Completeness Accuracy Classification Cutoff Assertions about Account Balances Existence Completeness Valuation and Allocation Rights and Obligations Assertions about Presentation and Disclosure Occurrence and Rights and Obligations Completeness Accuracy and Valuation Classification and Understandability Items Items on the inventory listing can be located in the company's warehouse. Footnotes to the financial statements are written in the ancient Sand script language. The company actually owns inventory found in its warehouse. Purchases in transit at year-end shipped FOB destination are properly excluded in the company's accounts. Answers (USE ONLY ONE LETTER) 1. ___ 2.___ 3. ___ 4. ___