Frag Jones Company Has a December Year End with a Tight

question 35

Multiple Choice

Frag Jones Company has a December year end with a tight reporting deadline,so the auditors confirmed the accounts receivable as of November 30 using positive confirmations.In addition to following up confirmation discrepancies,the auditor should

• A)test December transactions.
• B)send negative confirmations as of the end of December.
• C)test November transactions.
• D)do cutoff testing for the month of October.

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Definitions:

Product Lines

Collections of related products marketed by a company, each targeting specific customer segments or fulfilling different needs within the same broad category.

Assortment

The range of products or services offered by a company to meet various customer needs.

General Merchandise

Refers to a broad category of products that includes many different types of items, often sold in large retail stores or supermarkets.

Broad Assortment

A wide range of products or services offered by a business to cater to various customer preferences and needs.