What is the objective in testing for cut-off?
A) that no transactions of the current period have been delayed and recorded in a future period
B) whether all of the current period's transactions are recorded
C) whether transactions are recorded in the proper period
D) that no transactions from the prior period are included in the current period's balances

Question

Quizplus · Accepted Answer

The objective of testing for cut-off is to ensure that transactions are recorded in the correct period. This is important for accurate financial reporting and preventing manipulation of financial statements. Option A is incorrect because it refers to testing for completeness. Option B is incorrect because it refers to testing for accuracy. Option D is incorrect because it refers to testing for occurrence.

What Is the Objective in Testing for Cut-Off