A major source of cutoff information for sales and purchases of inventory is
A) confirmations from outside parties.
B) the test of details of balances.
C) physical observation.
D) the performance of analytical procedures.

Question

Quizplus · Accepted Answer

Physical observation is a major source of cutoff information for sales and purchases of inventory as it allows auditors to verify the actual inventory on hand at a specific point in time, ensuring that transactions are recorded in the correct accounting period.

A Major Source of Cutoff Information for Sales and Purchases