Which of the following is not a misstatement related to the occurrence assertion for inventory?
A) Consigned goods are included as part of inventory.
B) Unauthorized production activity.
C) Fictitious inventory.
D) Recorded inventory is not on hand because of theft.

Question

Quizplus · Accepted Answer

Unauthorized production activity is not related to the occurrence assertion for inventory. It is related to the completeness assertion. A misstatement related to the occurrence assertion would involve incorrect recording of inventory activities, such as recording fictitious inventory or including consigned goods as part of inventory. Additionally, recorded inventory not on hand due to theft would also be a misstatement related to the occurrence assertion.

Which of the Following Is Not a Misstatement Related to the Occurrence