Violations of the completeness objective for sales are of greater concern to the auditor than violations of the existence objective.

Question

Quizplus · Accepted Answer

Violations of the existence objective (i.e., whether all recorded sales transactions actually occurred) are generally of greater concern to auditors because they directly relate to the risk of overstatement of revenues, which is a common area of financial statement fraud. Violations of the completeness objective (i.e., whether all actual sales transactions are recorded) relate to the risk of understatement of revenues, which is typically of lesser concern from a fraud perspective.

Violations of the Completeness Objective for Sales Are of Greater