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 the

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

Multiple Choice

fictitious purchases

fictitious sales

selling and general expenses erroneously being recorded as merchandise purchases

unrecorded sales

Auditors sometimes use ratios as audit evidence.

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