Procedures such as a cutoff test and a search for unrecorded liabilities are related to subsequent events.

Question

Quizplus · Accepted Answer

Cutoff tests and searches for unrecorded liabilities are procedures performed during the audit of subsequent events, which are events that occur after the balance sheet date but before the issuance of the financial statements. These procedures are used to ensure that transactions are recorded in the appropriate accounting period and that all liabilities are properly recorded in the financial statements.

Procedures Such as a Cutoff Test and a Search for Unrecorded