Meaning of "assertion level" ?

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CA Abhishek Singh (Querist)
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27 September 2011 dear everyone,
please some one explain me the meaning of the term "assertion level".
what it means for the following sentence.

audtor should assess the risk of material misstatement at "assertion level"

explanation with an example will be highly appreciated.

waiting urgently for your reply.
Thanks in advance

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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27 September 2011 https://www.caclubindia.com/forum/assertion-level--163009.asp

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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14 October 2011 Assertion Level Risks
Assertion level risks are risks that are limited to one or more specific assertions in an account or in several accounts, for example, the valuation of inventory or the occurrence of sales. Assertion level risks are addressed by the nature, timing, and extent of further audit procedures, which may include substantive procedures or a combination of tests of controls and substantive procedures.

The risk of material misstatement at the assertion level has two components:
• Inherent Risk (IR), which is the susceptibility of an assertion to a material misstatement, assuming that there are no related controls. Inherent risk is greater for some assertions and related account balances, classes of transactions, and disclosures than for others.
• Control Risk (CR), which is the risk that a material misstatement that could occur in an assertion will not be prevented or detected by the entity’s internal control on a timely basis. Control risk is a function of the effectiveness of the design and operation of the entity’s internal control.

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