Substantive Testing and Cut-offs

It can be both. If the client does it regularly then this reconciliation is part of their internal controls and if we reperform one of those we are seeing if the reconciliation, ie the control, has been carried out properly. For the year-end receivables balance, performing a control account reconciliatin is a substantive test as it give difrec assurance about aspects of teh receivables balance. It can get complicated legally, but for you assume that a sale is made when the goods are dispatched - that's when title passes. An invoice might be raised later, but that is not the date of the sale.