Jerome and Gerard, Certified Public Accountanis, are preparing for the annual audit of the Fordham Office Machine Company. Several procedures which are included in the audit program pertaining to accounts receivable and sales are summarized below:

1. Evaluate internal controls relating to accounts receivable and sales.

2. Obtain and analyze an aged trial balance of accounts receivable; indicate any collections subsequent to the balance sheet date.

3. Confirm accounts receivable by direct written communication with customers.

4. Evaluate the adequacy of the allowance for uncollectible accounts.

5. Review the year-end cutoff of sales and cash collections.

6. Examine all phases of several sales transactions and subsequent cash collections selected at random.

Required:

a. What are the auditor's objectives in performing each procedure?

b. What is meant by "year-end cutoff of sales" (5 in the summarized audit program above), and why is it important that the "year-end cutuff of sales" be reviewed by the auditor?