Auditors Are More Concerned with the Occurrence Assertion for Revenues

question 15

Multiple Choice

Auditors are more concerned with the occurrence assertion for revenues than the completeness assertion because

• A) Entities are more likely to overstate than understate revenues.
• B) Entities 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 often is understated.

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Definitions:

Interests

Preferences, desires, or areas of focus that individuals or groups prioritize or find important.

Organizational Control

The process through which a company controls and directs its resources to achieve its goals, involving procedures, standards, and policies for regulating performance.

Employee Autonomy

The degree to which employees have the freedom and independence to plan and execute their work tasks.

Holistic

An approach or perspective that emphasizes the importance of understanding the whole system, person, or problem rather than just focusing on its parts.