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How to test the occurrence assertion for revenue?

The primary concern regarding revenue is that the company is overstating revenue because why would a company understate revenue? Therefore, the audit team needs to test the occurrence/existence assertion to assess whether all of the sales recorded actually exist.

The types of tests that can be performed will vary by company, but the audit team will generally send confirmations to customers, examine invoices, or vouch customer payments to the bank statement.


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