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The auditor would examine a sample of sales transactions throughout the entire period to determine if sales were recorde...

The auditor would examine a sample of sales transactions throughout the entire period to determine if sales were recorded in the proper period when performing a sales cutoff test.

True

False

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Answer #1

Solution. The given statement is True.

Explanation: The aim of auditing is to achieve complete and true picture of recording and reporting of auditor's opinion of organization's financial transactions during an accounting period, in case of sales cutoff test, the auditor records and analyzes any chosen sales data before and after the date of such period to recognize and check whether financial transactions were according to the details maintained by the organization and revenues generated from the same.

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