08-26-2006, 05:23 AM
when management makes financial statements, it makes some assertions which are completeness, existence, accuracy, valuation, obligations and rights and presentation and disclosure regarding the elements of financial statements.
The auditors have to give an opinion on the financial statements and verify the assertions made by the management. If in the auditor's opinion all the assertions of management are fulfilled, the auditor says that the financial statements give a true and fair view. Materiality is given due consideration in true and fair view. True and fair view means that the Financial statements are not materially misstated or are free of material errors.
The auditors have to give an opinion on the financial statements and verify the assertions made by the management. If in the auditor's opinion all the assertions of management are fulfilled, the auditor says that the financial statements give a true and fair view. Materiality is given due consideration in true and fair view. True and fair view means that the Financial statements are not materially misstated or are free of material errors.
