Question: 7 . 4 2 : An auditor noted that client sales increased 1 0 % for the year. At the same time, COGS as a

7.42: An auditor noted that client sales increased 10% for the year. At the same time, COGS as a percentage of sales had decreases from 45% to 40% and year-end accounts receivable had increased by 8%. Based on this information, the audior is most likely concerned about
a. Unrecorded costs.
b. Improper credit approvals.
c. Improper sales cutoff.
d Fictitious sales.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

1. an auditor noted that client sales had increased 10% for the year. At the same time, cost of goods sold as a percentage of sales had decreased from 45% to 40% and year-end accounts receivable had...

Q:

Im having trouble with question 3 part A of the attached file. I know and understand her needs but im not sure if im filling out the table correctly ? Assignment Tier 1 Financial Planning...

Q:

i need help from section 3 part A I have already posted this and you asked me to post under advanced option Assignment Tier 1 Financial Planning (Tier1FPPA_AS_v1A3) Page 2 of 92 Student...

Q:

MKT500 Week 7 Discussion Board I have attached the question, lecture notes, and an example of a student's response to the questions. Running head: KEYSAN NATURALS COMPANY: AIDA PRINCIPLE Keysan...

Q:

Hello ther, I need help with my finance case study (Ramsey Co. Case study). Please see the attachments for details and instructions. Thanks, Ramsey Inc. 2013 Purchase Order Register March 1, 2013 -...

Q:

Download the most recent financial statements of Medtronic and Boston Scientific.From the attached ratio sheet pick 6 relevant ratios and compare the two companies.Then from the ratios you selected...

Q:

Hello there, I need help with Finance homework. Please see attached for details information and instruction for homework. Thanks, Ramsey Inc. 2013 Purchase Order Register March 1, 2013 - March 31,...

Q:

Explain a planned or hypothetical Capital Budgeting project for Apple,Inc and estimate the cash flows (minimum of 7 years).Determine the WACC for the company and show the calculations; use this WACC...

Q:

Business, Management Whole Foods Market's Generic & Intensive Growth Strategies Updated Sep 16, 2015 Andrew Thompson Whole Foods Market generic strategy, intensive growth strategies, Porter model,...

Q:

0 The client implemented a new internal audit department consisting of three auditors. The internal auditors spend considerable time examining functions that relate to the preparation of the...

Q:

Burger Master bought the food concession for a baseball stadium for five years at a price of $1.2 million. If the operating profit is $400,000 per year, what IRR will Burger Master realize on its...

Q:

The rate constant of an ionic reaction depends also upon the ionic strength of the solution known as "primary kinetic salt effect" What are the salts you are using in this experiment to keep the...

Q:

28. Real Cash Flows (LO5) You want to have $2 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is 10 percent and the inflation rate is 3.8...

Q:

Media outlets often have websites that provide in-depth coverage of news and events. Portions of these websites are restricted to members who pay a monthly subscription to gain access to exclusive...