In representing that the financial report gives a fair presentation of the SMSF’s financial position and performance during the reporting period and is prepared in accordance with the applicable financial reporting framework, the trustee makes assertions implicitly or explicitly (positive confirmations) regarding the recognition, measurement, presentation and disclosure of the various elements of a financial report, including related disclosures.

In accordance with ASA 315^[86], the auditor uses assertions for classes of transactions, account balances, and presentation and disclosures in sufficient detail to form a basis for the assessment of risks of material misstatement and the design and performance of further audit procedures.

Assertions used by the auditor fall into the following categories:

1. Assertions about classes of transactions and events reflected in the SMSF’s operating statement for the period under audit:
   1. Occurrence - transactions and events that have been recorded have occurred and pertain to the SMSF.
   2. Completeness - transactions and events that should have been recorded have been recorded.
   3. Accuracy - amounts and other data relating to recorded transactions and events have been recorded appropriately.
   4. Cut-off - transactions and events have been recorded in the correct accounting period.
   5. Classification - transactions and events have been recorded in the proper accounts.
   6. Presentation – transactions and events are appropriately aggregated or disaggregated and clearly described, and related disclosures are relevant and understandable in the context of the requirements of the applicable financial reporting framework.
2. Assertions about SMSF account balances, and related disclosures reflected in the SMSF’s statement of financial position at the period end:
   1. Existence - assets, liabilities, and member entitlements exist.
   2. Rights and obligations (ownership) - the SMSF holds or controls the rights to assets, either directly or beneficially, and liabilities are the obligations of the SMSF.
   3. Completeness - assets, liabilities and member entitlements that should have been recorded have been recorded.
   4. Accuracy, valuation and allocation - assets, liabilities and member entitlements are included in the financial report at appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded.
   5. Classification – assets, liabilities and equity interests have been recorded in the proper accounts.
   6. Presentation - assets, liabilities and member entitlements are appropriately aggregated or disaggregated and clearly described, and related disclosures are relevant and understandable in the context of the requirements of the applicable financial reporting framework.