Which financial statement assertion is most directly tested by checking that recorded sales transactions actually occurred?
Correct answer: B. Occurrence
- A. Completeness
- B. Occurrence
- C. Valuation
- D. Cut-off
Explanation
The occurrence assertion addresses whether recorded transactions and events actually took place. Completeness asks whether all transactions that should be recorded have been included.
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Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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