An Auditor Evaluating Excessive Product Rejection Rates Should Investigate

Multiple Choice

An auditor evaluating excessive product rejection rates should investigate:

A) Communication between sales and production departments on sales returns. II. Volume of product sales year-to-date in comparison to prior year-to-date. III. Changes in credit ratings of customers versus sales to those customers. IV. Detailed product scrap accounts and accumulations.
B) I and III only
C) I and IV only
D) II, III, and IV only
E) I, II, III, and IV.