If Earnings on Financial Statements for Internal Use Only Have

Multiple Choice

If earnings on financial statements for internal use only have been manipulated in the past, an internal auditor is likely to focus on which of the following?

A) The proper accrual of payables at the end of the interim period.
B) The timing of revenue recognition and the valuation of inventories.
C) Whether accounting estimates are reasonable given past actual results.
D) Whether there have been changes in accounting principles that materially affect the financial statements.