Question: An auditor noted that client sales had increased 1 0 percent for the year. At the same time, cost of goods sold as a percentage

An auditor noted that client sales had increased 10 percent for the year. At the same time, cost of goods sold as a percentage of sales had decreased from 45 percent to 40 percent and year-end accounts receivable had increased by 8 percent. The auditor is most likely concerned about
Multiple Choice
improper credit approvals.
improper sales cut-off.
unrecorded costs.
fictitious sales.

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