Tracing a sample of time sheets before and after period end to the weekly payroll report and tracing the weekly payroll report to the general ledger to verify that payroll transactions are recorded in the proper period would provide evidence primarily for which assertion?
A)Classification.
B)Occurrence.
C)Cutoff.
D)Valuation.

Question

Quizplus · Accepted Answer

Tracing time sheets and payroll reports to the general ledger verifies that the payroll transactions are recorded in the proper period, providing evidence for the cutoff assertion. This ensures that expenses are recorded in the correct accounting period.

Tracing a Sample of Time Sheets Before and After Period