Recording a sale that did not occur violates the occurrence transaction-related audit objective and the existence balance-related audit objective.

Question

Quizplus · Accepted Answer

Recording a sale that did not occur violates the occurrence transaction-related audit objective, as it means that a transaction was recorded even though it did not occur, and the existence balance-related audit objective, as it means that the balance of accounts receivable or inventory may be overstated.

Recording a Sale That Did Not Occur Violates the Occurrence