The correct answer is a) adjust.
In financial accounting, a cutoff for cash transactions refers to the need to recognize and properly account for cash inflows and outflows within a specific reporting period. It is crucial for the client to adjust their records to ensure that all cash transactions are accurately reflected and that the financial statements present a true and fair view of the company’s financial position.
By making the necessary adjustments, the client can avoid discrepancies and ensure compliance with accounting standards. This process helps to maintain transparency and integrity in financial reporting, which is essential for decision-making and maintaining stakeholder trust.