An Auditee Uses a Cut-Off Date Other Than the Balance

question 58

Multiple Choice

An auditee uses a cut-off date other than the balance sheet date to ensure PPE purchases have been recorded in the proper period.What impact will this have on the audit?

• A)No reliance on internal controls for PPE is possible in this audit and a substantial approach must be taken.
• B)No additional audit testing is required beyond the cut-off date.
• C)The audit opinion must be modified due to a material GAAP departure in the financial statements.
• D)The auditor should verify both the cut-off and the transactions in the roll-forward period.

Appreciate the significance of avoiding biases and maintaining accuracy in the formulation of survey questions.

Differentiate between conclusions and recommendations in the context of a research report.

Discover the procedures and technologies involved in knowledge management within organizations.

Understand the nature and purpose of different types of reports.

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Definitions:

Remobilization

The process by which sedimentary deposits are eroded and transported to be deposited again in a new location.

Pressure Solution

A diagenetic process where mineral grains partially dissolve under high stress, typically in wet conditions, allowing deformation.

Regional Metamorphism

The process of transformation of rocks by heat and pressure over wide areas of the Earth's crust, typically associated with mountain building.

Low Pressure

A condition in the atmosphere where the air pressure is lower than the surrounding area, often leading to cloud formation and precipitation.