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.

Question

Quizplus · Accepted Answer

Clients are more likely to overstate revenues rather than understate them. Therefore, auditors are more concerned with controls associated with the occurrence assertion to ensure that revenues are not overstated. Controls related to the completeness assertion are still important, but they are of secondary concern.

When Undertaking Tests of Controls for Revenues, Auditors Are More