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Audit objectives for accounts receivable; cutoff tests

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What cutoff tests are performed for accounts receivable, how are they performed, and to what account audit objectives does the evidence pertain?

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The expert examines an audit objectives for accounts receivable cutoff tests.

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What cutoff tests are performed for accounts receivable, how are they performed, and to what account audit objectives does the evidence pertain?

Both the sales cutoff test and the cash receipts cutoff test pertain to accounts receivable. The sales cutoff test involves:

· Examining shipping documents for several days before and after the cutoff date to determine the date and terms of shipment.
· Tracing shipping documents to sales and inventory records to establish that the ...

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