Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in the planning stage of an audit, auditors freque

In the planning stage of an audit, auditors frequently consider certain financial ratios. For either...

50.1K

Verified Solution

Question

Accounting

In the planning stage of an audit, auditors frequently consider certain financial ratios. For either of the following two ratios, which are at unusual levels, please state one kind of error or fraud which would explain why the ratio is at an unusual level this year. Ratio #1 The number of days of sales in accounts receivable has increased from 35 to 60. The industry average is 34. [Days of sales in accounts receivable = {ending accounts receivable /sales}*365] OR Ratio # 2 Salesmens commission expense = 4% of sales. Last year it equaled 7%.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Find the inverse: f(x) = log3 (x + 1)-2. Present the answer using function notation.Provide...

Algebra
Q

For each of the studies, please indicate the following: 1) Independent variable(s) 2) Number of IVs 3) The...

Statistics
Q

3. What is the common label used to detect amplicons if you use agarose gel electrophoresis? 5....

Biology
Q

what is stochastic effect of radiation exposure? explain this.

Physics
Q

what physical therapist License Requirements Florida?

Psychology
Q

List the 3 pieces of legislation that protect employees from discrimination. What defenses does an organization...

Psychology
Q

Problems Help Seve Required information IThe following information applies...

Accounting
Q

If A company reports in its financial statements that it uses the FIFO method of...

Accounting
Q

Allison Corporation acquired all of the outstanding voting stock of Mathias, Incorporated, on January 1,2023,...

Accounting
Q

A firm's total assets are $1 million, total equity is $600,000, what is the debt...

Accounting
Q

Berk is evaluating how the large firms listed on the Australian market performed for a...

Finance
Q

Bankruptcy is a way of getting rid of some, or all, of your debt. Is...

Finance