To test for overstatement cutoff amounts when auditing Accounts payable, the auditor should trace receiving reports issued before year-end to related vendors' invoices to make sure they are not recorded as Accounts payable.

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To test for overstatement cutoff amounts when auditing Accounts payable, the auditor should trace vendors' invoices received before year-end to related receiving reports to ensure they are recorded as Accounts payable. The opposite would be tracing receiving reports to vendors' invoices, which would not be effective in testing for overstatement.

To Test for Overstatement Cutoff Amounts When Auditing Accounts Payable