In the Context of Assertions About Classes of Transactions and Events

question 106

Multiple Choice

In the context of assertions about classes of transactions and events for the period under audit, auditors considering occurrence gather evidence to verify that _______.

• A)a recorded transaction or event, such as a revenue or an expense item, actually took place and relates to the entity
• B)all transactions have been recorded and the financial statements are not understated or overstated because transactions have been omitted
• C)transactions and events have been recorded at appropriate amounts
• D)transactions and events have been recorded in the proper accounts

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Definitions:

Trial Marriage Cohabitation

Trial Marriage Cohabitation refers to a living arrangement where couples live together as if married, typically as a test of compatibility before formally tying the knot.

Drift

The slow movement, change, or development from one state, condition, or place to another, often without a clear direction or purpose.

Cohabitation

The act of living together in a romantic relationship without being legally married.

Trial Marriage Cohabitation

A living arrangement in which a couple lives together in a marriage-like setting without being legally married, often to assess compatibility.