CAF-8 · Chapter 9 · Question 2 of 10
To test the 'Cut-off' assertion for inventory at year-end, the auditor should:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Record the last Goods Received Note (GRN) and Goods Dispatch Note (GDN) numbers from the year-end and trace them to the accounting records.
Explanation
Cut-off testing ensures transactions are recorded in the correct accounting period by checking documents just before and just after the year-end.
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