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?

1 .

selling and general expenses erroneously being recorded as merchandise purchases

2 .

fictitious sales

3 .

fictitious purchases

4 .

unrecorded sales

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