To Determine Whether Sales Transactions Have Been Recorded in the Proper

question 109

Multiple Choice

To determine whether sales transactions have been recorded in the proper accounting period,the auditor performs cutoff tests.Which of the following best describes the overall approach used when performing cutoff tests?

• A)Ascertain that management's letter of representation includes the statement that transactions have been accounted for in the proper accounting period.
• B)Analyze transactions occurring within a few days before and after year-end.
• C)Confirm year-end transactions with regular customers.
• D)Examine cash receipts in the subsequent period.

---

Definitions:

Classical Conditioning

A training technique in which two stimuli are paired repeatedly; the response initially caused by the second stimulus becomes triggered by the first stimulus after some time.

Conditioned Response

A learned response to a previously neutral stimulus after it has been repeatedly paired with an unconditioned stimulus.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without prior learning or conditioning.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention. In classical conditioning, it becomes associated with an unconditioned stimulus.