Which Audit Procedure Would the Auditor Use to Test for the Cutoff

question 27

Multiple Choice

Which audit procedure would the auditor use to test for the cutoff balance-related audit objective?

• A) Review minutes of the board of directors' meetings.
• B) Review the accounts receivable trial balance for large items.
• C) Use audit software to foot and cross-foot the aged trial balance.
• D) Select the last 20 sales transaction from the current year's sales journal and the first 20 from the subsequent year's and trace each to the related shipping documents.

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Definitions:

Industrial Societies

Societies characterized by a reliance on mechanized labor and an emphasis on manufacturing and industrial production.

Nuclear Family

A group consisting of one or two parents and dependent offspring, which may include a stepparent, stepsiblings, and adopted children. Until recently, this term referred only to the father, mother, and child(ren) unit.

Colonized

The action or process of settling among and establishing control over the indigenous people of an area.

English

A West Germanic language originating in England and now widely spoken and recognized as an official or global lingua franca.