(Solution) - Sales cutoff tests are performed to obtain evidence that sales -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Sales cutoff tests are performed to obtain evidence that sales are recorded in the proper period. You are to perform a cutoff test of sales for a manufacturer that uses pre numbered bills of lading and sales invoices. All sales are FOB shipping point.

Required
How would you perform the cutoff test if the primary audit concern is the
a. Existence of sales
b. Completeness of sales