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) Obsolete inventory has not yet been reduced to fair market value.
B) There was an improper cutoff of sales at the end of the year.
C) An unusually large receivable was written off near the end of the year.
D) The aging of accounts receivable was improperly performed in both years.
Correct Answer:
Verified
Correct Answer:
Verified
Q11: What type of error is the CPA
Q12: The auditors obtain audit evidence for accounts
Q13: Which of the following would indicate the
Q14: Which of the following fraudulent activities most
Q15: You were surprised to note that approximately
Q17: Which of the following is most likely
Q18: If a company failed to record goods
Q19: Complex sales contracts are most likely to
Q20: Confirmation of accounts receivable provides absolute assurance
Q21: A client might overstate December 31 accounts