Audit Work On Trade Debtors/Sales: Ascertainment Of Correct Cut Off

September 26th, 2008 Comments off
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The auditor will need to be satisfied of correct cut-off. Without a correct cut-of, sales can be overstated hence the need to perform the following cut off tests:

1.0 For the last invoices issued during the year and which have been included in the debtors;

  • the goods have been despatched;
  • the goods are not included in stock

2.0 All good dispatched prior to the year end have been invoiced and included in debtors;

3.0 No goods dispatched after the year end have been invoiced and included in debtors

REFER TO MORE ARTICLES ON TOPIC ON AUDIT WORK ON TRADE DEBTORS

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Financial Accounting

 
 

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