The auditor's tests for proper cutoff of current year acquisitions of property, plant, and equipment are usually done as part of accounts payable cutoff tests.

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The auditor's tests for proper cutoff of current year acquisitions of property, plant, and equipment are usually done as part of accounts payable cutoff tests. This is because the accounts payable cutoff tests ensure that transactions are recorded in the proper period and that expenses associated with those transactions are properly recognized. The proper cutoff of acquisitions of property, plant, and equipment is important to ensure that these assets are properly recorded on the balance sheet and that any associated expenses are properly recognized in the proper period.

The Auditor's Tests for Proper Cutoff of Current Year Acquisitions