Cutoff tests designed to detect purchases made before the end of the year that have been recorded in the subsequent year provide assurance about management's assertion of:
A)presentation and disclosure.
B)completeness.
C)rights and obligations.
D)existence.

Question

Quizplus · Accepted Answer

The cutoff test is designed to ensure that transactions are recorded in the correct accounting period, which provides assurance about the completeness assertion.

Cutoff Tests Designed to Detect Purchases Made Before the End