C is corrent because the completeness assertion deals with whether all transactions have been included in the proper period.
A is incorrect because the rights and obligations assertion deals with whether assets are the rights of the entity and liabilities are the obligations of the entity at a given date.
B is incorrect because the presentation or disclosure assertion deals with whether particular components of the financial statements are properly classified, described, and disclosed.
D is incorrect because the existence or occurrence assertion deals with whether assets or liabilities of the entity exist at a given date and whether recorded transactions have occurred during a given period. In this question, the existence assertion would be tested if the auditor sampled from sales recorded prior to year-end to determine whether the sale occurred before or after year-end.
|
