Cutoff tests designed to detect credit sales made before the end of the year that have been recorded in the subsequent year provide assurance about management's assertion of:

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Cutoff tests are designed to test the completeness assertion, which states that all transactions that should have been recorded have been recorded. Detecting credit sales that have been recorded in the subsequent year provides assurance that all sales from the current year have been recorded in the current year. The other assertions (presentation and disclosure, rights and obligations, and existence) are not directly related to cutoff testing.

Cutoff Tests Designed to Detect Credit Sales Made Before the End