Your audit client is under intense pressure to meet an earnings target. Which transaction assertion for purchases are you most concerned with?
A) Occurrence.
B) Completeness.
C) Classification.
D) Accuracy.

Question

Quizplus · Accepted Answer

When a client is under pressure to meet earnings targets, there is a risk of incomplete reporting of purchases to inflate earnings. Therefore, the completeness assertion is the most concerning as it ensures that all purchases are recorded and included in the financial statements.

Your Audit Client Is Under Intense Pressure to Meet an Earnings