When Undertaking Tests of Controls for Revenues, Auditors Are More

question 1

Multiple Choice

When undertaking tests of controls for revenues, auditors are more concerned with controls associated with the occurrence assertion than they are with the completeness assertion because:

• A)clients are more likely to overstate than understate revenues.
• B)clients are more likely to understate than overstate revenues.
• C)it is difficult to determine when services have been performed.
• D)the allowance for doubtful accounts is often understated.

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Definitions:

Conditional

Relating to a statement or proposition that expresses a condition, typically formulated as "if...then..."

Body Fat

The portion of the human body made up of fat tissues, which serves as a source of energy, insulation, and protection.

Air Temperature

The measure of the warmth or coldness of the air in the environment, typically recorded in degrees Celsius or Fahrenheit.

Vernix Caseosa

A waxy or cheese-like white substance found coating the skin of newborns that provides protection while in the womb.