Multiple Choice
Auditors sometimes use ratios as audit evidence. For example, an unexplained increase in the ratio of gross profit to sales may suggest which of the following possibilities?
A) Fictitious purchases.
B) Fictitious sales.
C) Selling and general expenses erroneously being recorded as merchandise purchases.
D) Unrecorded sales.
Correct Answer:

Verified
Correct Answer:
Verified
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