Question: The auditor performs analytical review procedures and discovers an unexpected decrease in the ratio of gross profit to sales (gross margin percentage). The client takes
The auditor performs analytical review procedures and discovers an unexpected decrease in the ratio of gross profit to sales (gross margin percentage). The client takes an annual physical inventory and adjusts the inventory amount based on the physical inventory at year-end in December. An error that could explain the decrease in gross profit is. O A December purchase recorded in January O A December sale recorded in January A change in sales mix that increased the percentage of sales from high margin items A January sale recorded in December
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