Cutoff tests designed to detect credit sales made before the end of the year that have been recorded in the subsequent year provide assurance about the PCAOB assertion of
A) Presentation.
B) Completeness.
C) Rights.
D) Existence.

Question

Quizplus · Accepted Answer

The cutoff tests designed to detect credit sales made before the end of the year that have been recorded in the subsequent year ensure that all sales are recorded in the correct period and provide assurance about the completeness assertion. The presentation assertion relates to the proper classification and disclosure of transactions, rights assertion relates to ownership or legal right to the assets, and existence assertion relates to the physical existence of assets and liabilities.

Cutoff Tests Designed to Detect Credit Sales Made Before the End