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?

a. Fictitious purchases.

b. Unrecorded purchases.

c. Unrecorded sales.

d. Selling expense recorded as general expense.

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