Cutoff tests designed to detect purchases made before the end of the year that have been recorded in the subsequent year provide assurance about management's assertion of
A)presentation and Disclosure.
B)completeness.
C)rights and obligations.
D)existence.

Question

Quizplus · Accepted Answer

Cutoff tests are used to detect whether all transactions have been recorded in the correct accounting period. Therefore, they provide assurance about the completeness assertion made by management.

Cutoff Tests Designed to Detect Purchases Made Before the End