When Undertaking Tests of Controls for Revenues, Auditors Are More

question 2

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 often is understated.