In the context of assertions about classes of transactions and events for the period under audit, auditors considering occurrence gather evidence to verify that _______.
A)a recorded transaction or event, such as a revenue or an expense item, actually took place and relates to the entity
B)all transactions have been recorded and the financial statements are not understated or overstated because transactions have been omitted
C)transactions and events have been recorded at appropriate amounts
D)transactions and events have been recorded in the proper accounts

Question

Quizplus · Accepted Answer

When auditors are considering occurrence, they are gathering evidence to verify that a recorded transaction or event actually took place and is related to the entity. This is done to ensure that the financial statements are not misstated due to fictitious transactions or events being recorded. Options B, C, and D are related to completeness, accuracy, and classification of transactions respectively, and are not directly related to the occurrence assertion.

In the Context of Assertions About Classes of Transactions and Events