To test for proper sales cutoff, an auditor would obtain the number of the last bill of lading issued during the period under audit and verify that the item shipped had been excluded from the inventory listing.

Question

Quizplus · Accepted Answer

The statement is true. This test helps to ensure that sales are properly recorded in the correct period by verifying that items shipped have been removed from inventory before the end of the period.

To Test for Proper Sales Cutoff, an Auditor Would Obtain