Auditors Are More Concerned with the Occurrence Assertion for Revenues

question 56

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:

Volume Variance

An assessment of the impact of production or sales volume differences on a company's revenue or expenses, relative to budgeted amounts.