Part 3 Management Assertions (1s points) 1. 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 financal statements? Discuss. II. Indicate the most applicable of each of the following sertions Use only ONE letter for each item Assertions about Classes ot Transactions and Events: A. Occurrence B. Completeness C. Accuracy D. Classification E. Cutoff Assertions about Account Balances P Existence G. Completeness H. val uation and Allocation I Rights and obligations Assertions about Presentation and Diaclosure J. Occurrence and Rights and obligations Completeness L:Accuracy and Valuation M Classification and UnderstandabilitY Items . 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 rend shipped FOB destination are properly exeluded in che iconpny ac counts Answers (USE ONLY ONE LETTER 3