Substantive procedures to examine the cutoff assertion for accounts payable include:
A)selecting a sample of vouchers and agreeing them to authorized purchase orders.
B)selecting a sample of vouchers and agreeing them to the purchases journal.
C)selecting a sample of receiving reports around year-end and comparing dates on related vouchers to dates in the purchases journal.
D)recomputing the mathematical accuracy of a sample of vendor invoices.

Question

Quizplus · Accepted Answer

Selecting a sample of receiving reports and comparing the dates on related vouchers to dates in the purchases journal will help determine whether all accounts payable transactions have been recorded in the correct period. This will ensure the cutoff assertion is valid. Checking the accuracy of invoices or agreeing vouchers to purchase orders may help with other assertions but not specifically with cutoff.

Substantive Procedures to Examine the Cutoff Assertion for Accounts Payable