Question

In many audits, no substantive tests of transactions are made for the ________ assertion on the grounds that understatement of sales is not a concern.

A) accuracy
B) existence
C) completeness
D) none of the above

Answer 1

In audits, auditors often do not perform substantive tests of transactions for the completeness assertion since the understatement of sales is not typically a primary concern. Instead, their focus is often on preventing overstatement of earnings.

Step-by-step explanation:

In many audits, no substantive tests of transactions are made for the completeness assertion on the grounds that understatement of sales is not a concern.

Auditors focus on whether all revenues and sales that should have been recorded are indeed recorded. Understatements of revenues and sales could potentially lead to understatement of assets and profits, which is often not the primary concern for businesses and their stakeholders, as they are more worried about overstatements that could indicate higher earnings than actually achieved.