Auditors are more concerned with the occurrence assertion for revenues than 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

Auditors are more concerned with the occurrence assertion for revenues because clients are more likely to overstate than understate revenues. This is because revenue is a key metric that is closely watched by investors, analysts, and other stakeholders, and companies may feel pressure to report high revenue numbers to meet expectations or demonstrate growth. Therefore, auditors need to be particularly diligent in verifying that the reported revenue is accurate and has actually been earned by the company.

Auditors Are More Concerned with the Occurrence Assertion for Revenues