What is the primary focus of the completeness assertion in financial statements?

The completeness assertion in financial statements is primarily concerned with ensuring that all transactions and events that should be recorded are indeed documented in the financial statements. This assertion addresses the risk that not all relevant information is included, which could lead to financial statements that are misleading or inaccurate. By validating that all transactions are captured, auditors can help provide assurance that the financial statements present a complete picture of the entity’s financial position and performance.

To understand the significance of this assertion better, it is helpful to recognize that the completeness assertion underpins several aspects of the financial reporting process. If transactions are omitted, this could understate liabilities or overstate revenues, affecting the overall financial integrity.

While the other choices reflect important aspects of financial reporting—such as the valuation of assets, existence confirmation, and ownership establishment—they do not specifically address the completeness of all transactions being documented. Completeness is unique in its focus on ensuring that nothing has been left out from the financial records, making option B the most fitting answer.