Auditors record the last bill of lading used at the time of the inventory count to
A)Search for unrecorded sales.
B)Test cutoff.
C)Verify ownership.
D)All of the above.

Question

Quizplus · Accepted Answer

Auditors record the last bill of lading used at the time of the inventory count to test cutoff, which ensures that all transactions occurring before and after a company's balance sheet date are recorded in the appropriate period. The other options (search for unrecorded sales and verify ownership) may also be reasons for recording the last bill of lading, but they are not the primary reason.

Auditors Record the Last Bill of Lading Used at the Time