Question: Auditors sometimes use ratios as audit evidence. For example, an unexplained increase in the ratio of gross profit to sales may suggest which of th

Auditors sometimes use ratios as audit evidence. For example, an unexplained increase in the ratio of gross profit to sales may suggest which of th following possibilities?

Multiple Choice

fictitious purchases

unrecorded sales

selling and general expenses erroneously being recorded as merchandise purchases

fictitious sales

9

50

Auditors sometimes use ratios as audit evidence.

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