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Question 18 Two audit managers are discussing the upcoming audit of one of their...

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Accounting

Question 18
Two audit managers are discussing the upcoming audit of one of their major client's revenue
accounts. The client in question has strong demand and credit sales, and is one of the industry's
most prominent competitors. The assertions that are most likely to be evaluated as part of this
audit include
the rights and obligations assertion to ensure that the client has rights to any receivables, and the
accuracy assertion to ensure the revenue is recorded in the proper account
the existence assertion for revenue to ensure that stated revenue transactions actually exist, and the
occurrence assertion for accounts receivable to ensure stated receivables actually occurred
the cutoff assertion for revenue to ensure that revenue has been recorded in the correct period, and the
valuation assertion to ensure that the client has rights to the receivable generated
the occurrence assertion for revenue to ensure that stated revenue transactions actually occurred, and
the existence assertion for accounts receivable to ensure stated receivables actually exist
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