XYZ Brick Company decided to inflate sales by recording fictitious sales.Several non-existent clients were created and the sales were added into the sales journal throughout the year.The general transaction-related audit objective affected by these actions is
A)occurrence.
B)completeness.
C)accuracy.
D)posting and summarization.

Question

Quizplus · Accepted Answer

A) The occurrence audit objective refers to whether the recorded transactions are valid and actually occurred. By recording fictitious sales, XYZ Brick Company violated this objective by creating transactions that did not actually occur.

B) The completeness audit objective refers to whether all transactions that should be recorded have been recorded. By only recording fictitious sales from a few non-existent clients, XYZ Brick Company violated this objective by deliberately leaving out actual sales from real clients.

XYZ Brick Company Decided to Inflate Sales by Recording Fictitious