In Many Audits, No Substantive Tests of Transactions Are Made

question 120

Multiple Choice

In many audits, no substantive tests of transactions are made for the ________ assertion on the grounds that understatement of sales is not a concern.

• A) accuracy
• B) existence
• C) completeness
• D) none of the above

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Definitions:

Accounting Information

Financial data and insights about the operations and financial position of a business, used by stakeholders to make decisions.

Employees

Individuals who work for a business or organization and receive compensation for their labor, either on a salary or hourly basis.

Financial Accounting Standards Board

The authoritative body that has the primary responsibility for developing accounting principles.

Accounting Principles

Guidelines and rules that govern the field of accounting, such as the Generally Accepted Accounting Principles (GAAP) in the United States.