If pay periods do not align well with month-end, quarter-end, or year-end, which of the following key assertions is most at risk of misstatement?
A)Accuracy
B)Cutoff
C)Completeness
D)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

Cutoff is the key assertion most at risk of misstatement if pay periods do not align well with month-end, quarter-end, or year-end. This is because the timing of payments and recording of expenses or liabilities may be incorrect, which can affect the accuracy of financial statements.

If Pay Periods Do Not Align Well with Month-End, Quarter-End