Because the most likely misstatement in the revenue process is an overstatement misstatement,in many companies the most important assertions are:
A)rights and obligations
B)completeness and accuracy
C)cutoff and classification
D)existence and valuation

Question

Quizplus · Accepted Answer

The most important assertions in the context of revenue recognition, where overstatement is a common risk, are existence (ensuring that recorded revenues actually occurred) and valuation (ensuring that revenues are recorded at the correct amounts). These assertions directly address the risk of revenue overstatement by verifying that revenues exist and are accurately valued.

Because the Most Likely Misstatement in the Revenue Process Is