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it’s said the assessing of the risks of material misstatement would be at 2 levels: the financial statement level and the assertion level. However, just no idea what’s the difference between these 2 levels…could anyone help to advice the difference?
Assertion level = each figure in the FS and what it says about existence, ownership, valuation etc. It is here that materiality levels (eg a % of revenue) can be set to guide the audit team.
FS level is a bit harder. It is trying to look at the FS as a whole and judge if overall they materially misstate the position of the company. This is a matter for the partner’s opinion and judgement.
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