When do cutoff mistakes most commonly occur?
A) The auditor mistakenly asks the bank for the end-of-year bank statement instead of the statement which would include the two succeeding weeks.
B) Subsequent period transactions are recorded in the current period.
C) Current period transactions are recorded in the subsequent period.
D) B and C

Question

Quizplus · Accepted Answer

Cutoff mistakes most commonly occur when subsequent period transactions are recorded in the current period or when current period transactions are recorded in the subsequent period. Both options B and C represent such scenarios. Additionally, option A is a common error but is not specifically related to cutoff mistakes.

When Do Cutoff Mistakes Most Commonly Occur