When testing for the ________ assertion, auditors search for evidence that transactions have been recorded in the correct accounting period.
A)rights and obligations
B)valuation and accuracy
C)cutoff
D)existence

Question

Quizplus · Accepted Answer

The cutoff assertion is related to ensuring that transactions have been recorded in the correct accounting period. This assertion is important as it ensures that revenues and expenses are properly matched to the period in which they were incurred, which is a key principle in accrual accounting. Therefore, when testing for the cutoff assertion, auditors would search for evidence that transactions have been recorded in the correct accounting period.

When Testing for the ________ Assertion, Auditors Search for Evidence