Auditing the cutoff assertion pertaining to cash receipts is important because ________.
A)the auditor needs to ensure expenses are being matched with revenues
B)the bank may have recorded cash receipts in incorrect period
C)the client should have recorded cash receipts in the correct period
D)the recording of revenue and the corresponding receipt of cash should always be in the same fiscal period

Question

Quizplus · Accepted Answer

The cutoff assertion ensures that transactions are recorded in the correct accounting period, which is crucial for accurate financial reporting.

Auditing the Cutoff Assertion Pertaining to Cash Receipts Is Important