Auditors are required to audit the revenue process
A)with the presumption that improper revenue recognition is a fraud
B)with the presumption that revenue transactions give rise to the risk of material misstatement
C)with the presumption that improper revenue recognition is a fraud risk
D)with the presumption that revenue assertions give rise to the risk of material misstatement

Question

Quizplus · Accepted Answer

Auditors are required to approach the audit of the revenue process with the presumption that improper revenue recognition is a fraud risk, as revenue is often a significant area where fraud can occur.

Auditors Are Required to Audit the Revenue Process