Question: An auditor is looking at the decrease in accounts receivable and believes this to be reasonable as sales are down. The auditor decides no further

An auditor is looking at the decrease in accounts receivable and believes this to be reasonable as sales are down. The auditor decides no further evidence is required even though management increased credit limits for its customers in order to boost sales and recorded the additional sales as deferred revenue, creating a classification issue. This scenario describes the

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