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.

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Definitions:

Social Skills

interpersonal behaviors that are necessary for effective and appropriate communication and interaction with others in various social settings.

Ambivalent

Having mixed feelings or contradictory ideas about something or someone.

Authoritative

Describes a leadership or parenting style that is firm, fair, and respects the opinions and needs of others.

Authoritarian

A style of leadership or governance characterized by strict obedience to authority, often at the expense of personal freedom.