What aspect does testing existence focus on during an audit?

Testing existence during an audit specifically aims to confirm that recorded items, such as inventory, physically exist. This aspect is crucial because it helps auditors validate that the items included in the financial statements are not just figures on paper, but rather identifiable actual assets. This verification involves physical inspection, observations, and sometimes confirmations from third parties, ensuring that what is reported on the balance sheet accurately represents real, present resources. This process helps prevent misstatements related to overstatement of assets, thus providing a more accurate portrayal of the company's financial position.

The other options, while they refer to important aspects of auditing, do not center around the concept of existence. Verifying projected revenues relates to realizable values, assessing the accuracy of income statement items involves testing amounts rather than confirming physical existence, and evaluating management's assertions on liabilities focuses on completeness and presentation rather than existence.