In order to efficiently test the purchases/accounts payable cut-off, an auditor will be most likely to:
A)compare cut-off reports with purchase orders.
B)coordinate cut-off tests with physical inventory observation.
C)coordinate mailing of confirmations with cut-off tests.
D)compare vendors' invoices with vendors' statements.

Question

Quizplus · Accepted Answer

Coordinating the cut-off tests with physical inventory observation allows the auditor to ensure that all inventory purchases have been recorded in the correct period. This helps in testing the purchases/accounts payable cut-off. Comparing cut-off reports with purchase orders, mailing of confirmations with cut-off tests, and comparing vendors' invoices with vendors' statements may be part of the overall testing strategy, but they do not directly address the cut-off issue.

In Order to Efficiently Test the Purchases/accounts Payable Cut-Off, an Auditor