What are financial statement assertions made by management often used for?

Financial statement assertions made by management are fundamental statements regarding the financial information provided in the statements. They serve as the foundation upon which auditors base their assessments during the audit process. These assertions help auditors understand and evaluate the validity, completeness, accuracy, and presentation of the financial statements in accordance with relevant accounting frameworks.

By establishing these assertions, management communicates certain claimed characteristics about the financial statements. Auditors can then design appropriate audit procedures aimed at verifying these assertions, thus ensuring the reliability of the financial statements for users. This process is central to effectively conducting an audit, as it provides direction for the work auditors will need to perform to obtain reasonable assurance regarding the truthfulness of the financial information presented.

Considering the other options, the assertion is not primarily meant for informing stakeholders about performance, though it indirectly serves this purpose. Additionally, while auditing standards certainly guide the audit process, the assertions themselves do not establish these standards; rather, they are intended for use during audits. Lastly, while satisfying regulatory requirements is essential for a company, the assertions are primarily focused on the verifiability of financial statements during an audit rather than mere compliance.