In an Audit of Financial Statements, the Risk of the High

Multiple Choice

In an audit of financial statements, the risk of the high rate of return of products sold includes relates to which of the following?

A) Sales that are recorded improperly.
B) An estimate of accrued returns that reduces net income.
C) A reduction of net sales for an increase to the sales returns and allowance account.
D) Consignment goods that are returned and forwarded to third parties.