Final answer:
The statement is true; auditors focus on the occurrence principle to confirm that sales returns and allowances are valid transactions in the financial statements.
Step-by-step explanation:
The statement is true. When auditors evaluate sales returns and allowances, a primary emphasis is indeed on the objective of occurrence. This objective seeks to ensure that all recorded sales returns and allowances did, in fact, occur, and are valid transactions that relate to the company's business transactions within the appropriate accounting period. Auditors typically perform various procedures, such as inspecting documentation, confirming details with third parties, and reviewing terms of sale and return policies to verify that the sales returns and allowances reflected in the financial statements are accurate.