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Cutoff tests designed to detect credit sales made before yr end that have been recorded in subsequent yr provide assurance about mgmt assertion of :
A. Presentation
B. Completeness
C. Rights
D. Existence
Now I know it’s completeness because sales tend to be overstated and we need to trace/completeness. My queston is, if it asks “detect liabilities made before yr end”, would the answer be d? The ans explanation confuses me. From Wiley: “existence assertion would be tested if the auditor sampled from sales recorded prior to yr end to determine whether the sale occurred before or after yr end.”
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