Question: After performing a variation analysis, the auditor observes COGs increasing by 2 5 % while Revenue increases by 4 0 % . Which of the

After performing a variation analysis, the auditor observes COGs increasing by

25 %

while Revenue increases by

40 % .

Which of the following statements is true?Question

10

options:Current year Revenue is potentially understatedCurrent year Revenue is potentially overstatedNone of the answer choices are correctCurrent year COGS is potentially overstated

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