Question: The important assertion(s) for revenue is (are): (a) Occurrence, because testing needs to ensure that recorded sales are genuine. (b) Never completeness, because a company

The important assertion(s) for revenue is (are): 

(a) Occurrence, because testing needs to ensure that recorded sales are genuine. 

(b) Never completeness, because a company would never want to understate its revenue. 

(c) Completeness when there could be pressure to defer sales recognition to give the company a head start on meeting the next year’s target. 

(d) Both (a) and (c).

Step by Step Solution

★★★★★

3.33 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

d B... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Auditing Risk Based Approach Questions!

Q:

Classification is an important assertion for expenses because: (a) There is often an incentive to overstate expenses. (b) Some expenses are subject to specific disclosure requirements. (c) Vouching...

Q:

Why is occurrence a high-risk assertion for revenue?

Q:

Management assertions about classes of transactions are a. Occurrence. b. Completeness. c. Authorization. d. Accuracy. e. Cutoff. f. Classification. For each management assertion, indicate an example...

Q:

I have an assignment for my ACC/497 class and I need someone to reword this paper so it is not plagiarized. Thank you! Week 5 Individual Assignment Learning Check: 4-15 Some other ways in which the...

Q:

I have an assignment for my ACC/497 class and I need someone to reword this paper so it is not plagiarized. Thank you! Week 5 Individual Assignment Learning Check: 4-15 Some other ways in which the...

Q:

Chapter Four MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Expressing an opinion on whether the financial reports are prepared in...

Q:

Hi, I am taking accounting class (Auditing & Assurance Services). Please provide original homework. Type up to two pages ( about 500-600 words) and must answer questions clearly. I have solutions for...

Q:

Hi, I am taking accounting class (Auditing & Assurance Services). Please provide original homework. Type up to two pages ( about 500-600 words) and must answer questions clearly. I have solutions for...

Q:

Hi, I am struggling with my homework which is related to auditing class. Please provide original homework. Type up to two pages ( about 500-600 words) and must answer questions clearly. I have...

Q:

If possible pls help me with this via email as the answer should be limited to one individual per submission. again pls if possible thru email antonionlyfans6969 g mail.com Prepare a word doc., about...

Q:

Triton Private Equity Fund is considering the purchase of 100% of the common equity of Cebec Social Media, a young growing company. After much study, Triton management projects Cebec will produce the...

Q:

A stock is currently $117.47 and will move either up to 143.14 or down to 105.22 at the end of 9 months. If the risk-free rate is 3.65% per annum and the strike price is $ 105.29, what is the value...

Q:

c . For the Peers rating, run a regression using it as the dependent variable and GMAT, Accept Rate, Salary, and Enrollment as independent variables. Interpret these equations. If required, round...

Q:

1.14. Predict what will happen to interest rates and aggregate output when there is an autonomous export boom.

Q:

If preliminary testing of controls reveals that the rate of deviation in controls is above the expected rate, the auditor will: (a) Reduce detection risk and increase reliance on detailed substantive...

Q:

If preliminary testing of controls reveals that the rate of deviation in controls is above the expected rate, the auditor will: (a) Reduce detection risk and increase reliance on detailed substantive...

Q:

Sampling risk: (a) Is the risk that the results of the test will be misinterpreted by the auditor. (b) Is the risk that the sample chosen by the auditor is not representative of the population of...

Q:

For the two projects below, determine the acceptable projects based on the following: coe Payback Period cae Discounted Payback coe Net Present Value coe Profitability Index (Benefit-Cost Ratio) cse...

Q:

1. want determine if there is a significant correlation between cumulative GPA and having access to free meals at 7 Ontario universities. We tabulate the data as follows (see the table on the next...

Q:

Specify how risk aversion influences required rates of return.