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 conducted to ensure that transactions are recorded in the correct accounting period. By detecting credit sales made before the end of the year that have been recorded in the subsequent year, the cutoff test provides assurance about completeness, which is the management's assertion that all transactions and events that should have been recorded have been recorded.

Cutoff Tests Designed to Detect Credit Sales Made Before the End