Which one of the following statements about the existence and completeness objectives is true?
A) Existence deals with overstatements and completeness deals with understatements.
B) The completeness objective deals with transactions being recorded in their entirety.
C) The existence and completeness objectives both emphasise the inclusion of all transactions.
D) Existence deals with understatements and completeness deals with overstatements.

Question

Quizplus · Accepted Answer

Existence ensures that recorded transactions or assets actually exist, preventing overstatements. Completeness ensures all transactions or assets that should be recorded are included, preventing understatements.

Which One of the Following Statements About the Existence and Completeness