The most important aspect of evaluating the client's method of obtaining a reliable cutoff is to
A) perform extensive detailed testing of cutoff.
B) evaluate the client's control procedures around cutoff.
C) confirm a sample of transactions near period end with customers.
D) confirm transaction with customers.

Question

Quizplus · Accepted Answer

Evaluating the client's control procedures around cutoff is the most important aspect of obtaining a reliable cutoff. This includes assessing the design and implementation of controls to ensure that transactions are recorded in the correct period and verifying that control procedures are being consistently applied. Performing extensive detailed testing of cutoff and confirming transactions with customers may also be necessary, but they are not the most important aspect of the evaluation.

The Most Important Aspect of Evaluating the Client's Method of Obtaining