An auditor who is engaged to examine the financial statements of a business enterprise will request a cutoff bank statement primarily in order to:

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A cutoff bank statement is a statement of a client's bank account that covers a period up to the closing date of an accounting period. An auditor will request this bank statement primarily to verify reconciling items on the client's bank reconciliation. Reconciling items are items that appear on the client's bank reconciliation but not in the bank statement, or items that appear in the bank statement but not on the client's bank reconciliation. By examining the cutoff bank statement, the auditor can detect any differences and investigate them further. This helps to ensure that the client's financial statements are accurate and complete.

An Auditor Who Is Engaged to Examine the Financial Statements