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What is the occurrence assertion on the income statement?

The occurrence assertion related to whether the transaction and event that was recorded actually occurred. For example, if Tahoe Ski Mountain recorded the sale of skis to Larry Brown, then the audit team would request evidence to support the fact that the transaction actually occurred!

To test the occurrence assertion, the audit team could send confirmations to the customer and have the customer confirm that the sale was a real transaction. The audit team could also obtain invoices and bank information to vouch and verify the customer actually paid.


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