In performing your analytical review of sales, you find the following for a company with a 30 June year-end:

Monthly gross profit April — 25 per cent May - 27 per cent June - 37 per cent July - 21 per cent How would this affect the audit plan?

(a) It would be necessary to discuss with management the high level of sales in June.

(b) There is no problem — the gross profit figures all appear to be healthy.

(c) The cut-off for sales would need to be reviewed carefully.

(d) All cash payments in June would need to be reviewed to ensure they have been properly recorded.

Choose the correct answer.