Assume the receiving clerk accidentally wrote June 30 on receiving reports

5835 through 5837 Explain how that will affect the correctness of the financial statements. How will? you, as an? auditor, discover that? error?

After making the type of cutoff adjustments shown in part? a, current year purchases? (inventory and accounts? payable) would be overstated or be understated / not be effected

if the receiving clerk accidentally wrote June 30 on receiving reports 5835 through 5837

How will? you, as an? auditor, discover that? error?

A.

?You, the? auditor, might catch this by comparing receiving reports recorded just before year end to vendor invoices or vendor statements to determine if the items reflected as being received by the client just prior to year end are included in the vendor invoice or vendor statement as a balance owed as of June 30.

B.

?You, the? auditor, could be on hand on the balance sheet date and record in the audit working papers the last shipping document issued in the current period.? Later, the auditors can examine shipping documents before and after the balance sheet date to determine if they were correctly dated.

C.

?You, the? auditor, might catch this by comparing receiving reports recorded just after year end to vendor invoices or vendor statements to determine if the items reflected as being received by the client just after year end are included in the vendor invoice or vendor statement as a balance owed as of June 30.

D.

Both A and C are ways that an auditor could discover the error.