Financial statement assertions. Management is responsible for the fair presentation of financial statements.

In representing that the financial statements are fairly presented in conformity with generally accepted accounting principles, management implicitly or explicitly makes assertions relating to account balances at year-end (account balances), classes of transactions and events (transactions classes), and presentations and disclosures (disclosures). Those assertions (included in SAS 106) are here presented at the transaction class, account balance, and disclosure levels.
Transactions Classes OccurrenceTransactions and events that have been recorded have occurred and pertain to the entity Account Balances ExistenceAssets, liabilities, and equity interests exist Rights and obligationsThe entity holds or controls the rights to assets, and liabilities are the obligations of the entity CompletenessAll assets, liabilities, and equity interests have been recorded Valuation and allocationAssets, liabilities, and equity interests are included at appropriate amounts. Disclosures OccurrenceDisclosed events and transactions have occurred Rights and obligations Disclosed events pertain to the entity CompletenessAll disclosures that should have been included have been included Accuracy and valuation Information is disclosed fairly and at appropriate amounts

CompletenessAll transactions and events have been recorded AccuracyAmounts and other data relating to recorded transactions have been recorded appropriately CutoffTransactions and events have been recorded in the correct accounting period ClassificationTransactions and events have been recorded in the proper accounts

Classification and understandabilityInformation is presented and described clearly