When auditors evaluate sales returns and allowances, a primary emphasis is on the objective of occurrence.

Question

Quizplus · Accepted Answer

This is true. Occurrence is one of the important assertions for sales returns and allowances. Auditors need to evaluate whether the recorded sales returns and allowances actually occurred, and that the amounts recorded are accurate and complete. This helps to ensure the overall accuracy of the financial statements.

When Auditors Evaluate Sales Returns and Allowances, a Primary Emphasis