Cut-off assertion
Cut-off concerns whether transactions are recorded in the correct accounting period. Auditors test dates and terms around the reporting date, recognising that the correct period depends on the nature of the transaction and relevant accounting rules.
Worked example
The auditor compares dispatch dates and terms with sales invoices recorded just before and after year end.
Common mistake
An invoice date by itself does not always determine when control transferred.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |