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.

Question

Quizplus · Accepted Answer

Since Frag Jones Company has a December year end with a tight reporting deadline, the auditor cannot wait for December transactions to perform the audit testing. Therefore, the auditor should test December transactions as soon as possible to ensure the completeness and accuracy of the financial statements. The other options (B, C, D) do not address the issue of testing December transactions.

Frag Jones Company Has a December Year End with a Tight