I came across following statement:
The set of all bijective functions on a finite set forms a group under function composition.
The proof was given as follows:
We can have identity function as $\{(1,1),(2,2),(3,3),(4,4)\}$.
Since function is bijective and mapping to same set, we can have an inverse for any function by inverting the relation (changing the mapping $a\rightarrow b$ to $b\rightarrow a$).
Since the function maps to the same set, it must be closed and associative also.
I was thinking is associativity really holds in above set. For example, consider the finite set: $\{1,2,3,4\}$ and two bijective functions $f_1$ and $f_2$ as follows:

Now, $f_1(f_2(1))=f_1(3)=3$ and $f_2(f_1(1))=f_2(2)=1$. So, I feel its not bijective. Am I incorrectly evaluating associativity?
Your example shows that compostion is not commutative. It has nothing to do with being associative.