For the following statement/questions match the assertion that best matches: When auditing the following accounts identify what auditors are primarily concerned with: a. Revune
b. Assests
c. Liabilities
d. Expenses

1. Overstatments
2. Understatments

When auditing the following accounts, auditors are primarily concerned with:

   Accounts               Assertions

a. Revenue            Overstatements

b. Assets               Overstatements

c. Liabilities           Understatements

d. Expenses         Understatements

Explanation:

Auditors are generally concerned about these assertions when auditing financial statements and their related disclosures: accurate recording, completeness, cut-off, existence, rights and obligations, and valuation.  For revenue and assets, they want to ensure that these are not overstated.  Their overstatement will increase the reported profits of the entity, which is a kind of cooking the books to please analysts.  They are also interested in ensuring that liabilities and expenses are not understated for the same purpose.

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