Which one of the following would NOT be a part of the approach used in determining the reasonableness of cutoff?
A) Evaluate whether the client has established adequate procedures to ensure a reasonable cutoff.
B) Decide on the appropriate criteria for cutoff.
C) Review client's December 31 and January 2 entries for cutoff problems.
D) Test whether a reasonable cutoff was obtained.
Correct Answer:
Verified
Q23: Most tests of accounts receivable and the
Q24: When positive confirmations have been used, it
Q25: The primary purpose of accounts receivable confirmation
Q26: Which one of the following types of
Q27: When positive confirmations are used, ASA 505
Q29: When the confirmation requests are returned by
Q30: This year is the first time that,
Q31: Cutoff misstatements occur when:
A) the auditor mistakenly
Q32: The advantage of using the negative form
Q33: The understatement of sales and accounts receivable
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