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:

Subduction

The process by which one tectonic plate moves under another, sinking into the mantle due to gravitational forces.

Conduction

Transfer of thermal energy by direct contact.

Transformation

The process of change in form, appearance, nature, or character.

Convergence

The coming together of tectonic plates, often resulting in mountain building, earthquakes, and volcanic activity.