An Auditor Discovered That a Client's Accounts Receivable Turnover Is

Multiple Choice

An auditor discovered that a client's accounts receivable turnover is substantially lower for the current year than for the prior year. This may indicate that:

A) Fictitious credit sales have been recorded during the year.
B) Employees have stolen inventory just before the year-end.
C) The client recently tightened its credit-granting policies.
D) An employee has been lapping receivables in both years.