A$.$

Inventory appears to be maintained at a higher level than is necessary for the company.

B$.$

Depreciation expenses may be understated for the year.

C$.$

The allowance for uncollectible accounts may be understated.

D$.$

Collection of accounts receivable appears to be a problem.

E$.$

Depreciation expenses may be overstated for the year.

F$.$

The allowance for uncollectible accounts may be overstated.

G$.$

Obsolete or unsalable inventory may be present and may require markdown to the lower of cost or market.

H$.$

Commission expense could be overstated during the current year or could have been understated during each of the past several years.$$ Or$,$ sales may have been understated during the current year or could have been overstated in each of the past several years.

I.

Inventory appears to be maintained at a lower level than is necessary for the company.

J$.$

The cost of inventory appears to be less than market. Inventory might be understated.

K$.$

Commission expense could be understated during the current year or could have been overstated during each of the past several years.$$ Or$,$ sales may have been overstated during the current year or could have been understated in each of the past several years.

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