Part 3 Management Assertions (15 points) I. Conceptually, management makes assertions about the financial statements. (1) Define, or explain, what is meant by management assertions . ( help the auditor in a Discuss 2) How does the concept of management assertions uditing an entity's Einancial statements? .. icate the most applicable of each of the following sertions. Use only ONE letter for each item Assertions about classes of Transactions and Events: D. Classification E. Cutoft A. Occurrence B. Completeness c. Accuracy Assertions about Account Balances P. Existence G. Completeness H. Valuation and Allocation I. Rights and obligations Assertions about Presentation and Disclosure J. Occurrence and Rights and Obligations K. Completenessa L. Accuracy and valuation M. Classification and Understandability Items 1. Itema on the inventory listing can be located in the company's warehouse 2. Footnotes to the financial statements are written in the ancient Sand script language 3. The company actually owns inventory found in its warehouse. 4. Purchases in transit at year end shipped FOB destination are properly excluded in the company a accounts AnswerS (USE ONLY ONE LETTER