Tracing a sample of time cards before and after period end to the weekly payroll report and tracing the weekly payroll report to the general ledger to verify that payroll transactions are recorded in the proper period would provide evidence primarily for which assertion?
A) Classification.
B) Occurrence.
C) Cutoff.
D) Valuation.

Question

Quizplus · Accepted Answer

Tracing time cards before and after period end to the payroll report and then to the general ledger would provide evidence for the cutoff assertion, which ensures that transactions are recorded in the proper accounting period. This test checks whether payroll transactions are recorded in the correct period, which is important for the accuracy of the financial statements.

Tracing a Sample of Time Cards Before and After Period