Question

Cutoff tests designed to detect valid sales that occurred before the end of the year but have been recorded in the subsequent year would provide assurance about management’s assertion of:

a. Presentation and Disclosure.
b. Completeness.
c. Rights and obligations.
d. Existence.

Answer 1

b. Completeness

Step-by-step explanation:

Cut off tests are designed to ensure that transactions which relate to a particular period are reported in that very period.

Assertions refers to the claims made by the management and it's staff relating to various aspects of the business.

Cut off procedures provide an auditor with evidence against management's assertion of completeness and occurrence of a transaction.

Completeness refers to whether transactions pertaining to a period have been recorded.

Occurrence means that recorded transactions ain't fictitious and have actually happened.