The financial statements so prepeared are a collection of assertions as to both the state of affairs of the entity at balance date and the results of its operations for the period then ended. That is, that the financial statement items, and underlying account balances and classes of transactions are, in all material respects, complete , valid and accurate . All valid account balances are included in the financial statement item. Account balance level All valid assets, liabilities, equities, revenues and expenses are included in the account balance. All valid economic events are included in the class of transaction.
Management is responsible for the internal control procedures it establishes.
There is an inherent assertion by management that such internal control procedures are effective as to both their design and operation .