The cut-off assertion is audited by:
A) reviewing the general ledger for adjusting entries after year-end close.
B) reviewing cash disbursements for payments made subsequent to year-end.
C) reviewing cash disbursements for payments made prior to year-end.
D) All of the above.

Question

Quizplus · Accepted Answer

The cut-off assertion is audited by ensuring that transactions and events have been recorded in the correct accounting period. This involves reviewing adjusting entries after year-end close, cash disbursements made subsequent to year-end, and payments made prior to year-end to verify their proper recording, thus all options A, B, and C are correct approaches.

The Cut-Off Assertion Is Audited By