To test for proper sales cutoff, an auditor would obtain the number of the last shipping document (bill of lading)issued during the period under audit and verify that the item shipped had been excluded from the inventory listing.

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This statement is true. An auditor could obtain the number of the last shipping document issued during the period under audit and verify that the item shipped had been excluded from the inventory listing to test for proper sales cutoff. This helps ensure that sales are recorded in the appropriate period and not carried over to the next period.

To Test for Proper Sales Cutoff, an Auditor Would Obtain