A common use of block testing is testing
A)cutoff.
B)existence.
C)authorization.
D)valuation.

Question

Quizplus · Accepted Answer

Block testing is a sampling method used in auditing to test the completeness of transactions. It involves selecting a block of transactions from a specific period and testing them for a certain attribute. Cutoff testing is a common use of block testing, where the auditor tests whether transactions are recorded in the correct accounting period. This helps ensure that revenue and expenses are recognized in the appropriate time period, which is important for financial reporting accuracy. Therefore, option A is the best choice. Options B, C, and D may also be tested using block testing, but they are not the best choice for this question.

A Common Use of Block Testing Is Testing