Which of the following might be detected by an auditor's review of the entity's sales cutoff?
A)Excessive goods returned for credit.
B)Unrecorded sales discounts.
C)Lapping of year-end accounts receivable.
D)Overstated sales for the year.

Question

Quizplus · Accepted Answer

An auditor's review of the entity's sales cutoff would involve verifying that all sales made up to the end of the reporting period have been recorded in that period. If sales have been overstated for the year by recording sales made after the end of the period, this would be detected in the review of cutoff procedures.

Which of the Following Might Be Detected by an Auditor's