Controls over approving credit relate to the:
A) existence or occurrence assertion.
B) completeness assertion.
C) accuracy, valuation or allocation assertion.
D) rights and obligations assertion.

Question

Quizplus · Accepted Answer

Controls over approving credit primarily ensure that the amounts recorded for credit sales are accurate, properly valued, and allocated correctly. This relates directly to the accuracy, valuation, or allocation assertion, as it ensures that credit sales are recorded at the correct amounts and are properly included in the financial statements.

Controls Over Approving Credit Relate to The