When auditing the inventory area of the financial statements, observation is generally required, unless the following criteria is met i. For the fiscal year ending December 31, the previous year and the current year, Dubai Co. had the following changes in account growth. Which of the following best represents the conclusions drawn? ACCOUNT: Current Year: Prior Year: Net sales growth 10.5% 12.1% 11.1% 12.8% Cost of goods sold growth Accounts receivable growth 13% 10.5% Investigate Inventory for possible overstatement

O Investigate Examine allowance of doubtful accounts/ bad debt Expense for possible understatement of the allowance/Expense. 

O Investigate COGS for possible understatement 

O Investigate Examine allowance of doubtful accounts/ bad debt Expense for possible overstatement of the allowance/Expense. O

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Answers Option B Inventory Examine allowance of doubtful accounts bad de... View the full answer