1.Give 2 examples of cut off errors and explain what management assertions are affected by such errors.

2.For each of the items below, identify the account(s) that need(s) to be audited carefully and the reason; for example, "potential overstatement or understatement of................................

A)Current year accounts receivable is larger than last year but the allowance for doubtful accounts is the same.

B) Current year inventory is larger than last year but the current year gross margin (profit) is larger.