An Auditor Has Determined That a Client's 'Days in Receivables

Multiple Choice

An auditor has determined that a client's 'days in receivables' ratio has slowly increased over the last three years.Which of the following could be a possible reason for this?

A) The client has hired a collection agency which is extremely efficient at collecting.
B) The receivables have been secured as collateral for a recent capital asset purchase.
C) The accounts receivable department has implemented a new IT system, making collections much quicker and more efficient.
D) The accounts receivable turnover ratio has decreased due to poor internal controls related to credit granting procedures.