In the space provided below, identify the specific financial statement assertion that is most relevant to the situation described for a financial statement audit of a public company (an issuer). Assertions may be used once, more than once, or not at all.

1. The auditor selected a sample of fixed assets on the entitys factory floor and agreed the fixed asset identification tag numbers for those items to the entitys detailed listing of equipment supporting the related general ledger control account.

2. A letter from the entitys attorneys (in response to the auditors letter of inquiry) informed the auditor about a unasserted legal liability allegation that was probable of assertion, was reasonably possible that a material unfavorable outcome would result, and which had not been addressed in the entitys financial statements.

3. In auditing the 20X1 calendar-year-end financial statements, the auditor noticed that the entity being audited recorded a sale on December 30, 20X1, but actually shipped the merchandise (FOB-shipping point) on January 3, 20X2.

4. Based on the auditors analysis, the auditor concluded that the entitys estimated product warranty liability was too low relative to the likely warranty claims to be expected from customers in the months ahead.

5. The auditor received a positive confirmation response from the manager of a public warehouse regarding the entitys inventory that was secured in that facility.