Sally Lauren Is the External Auditor for Modus Industries, a Public

question 4

Multiple Choice

Sally Lauren is the external auditor for Modus Industries, a public company that manufactures disk drives. As she analyzes the numbers, she finds that the quick ratio, which has typically remained consistent, increased from 1.7 to 2.3 over the previous year. What type of financial statement fraud scheme could be occurring?

• A) Inflated inventory
• B) Omitted expenses
• C) Fictitious accounts receivable
• D) None of the above

Understand the concept and elements of "actual product" attributes.

Identify and differentiate between product line, product mix, and their extensions.

Comprehend the categorization of consumer goods and their purchasing patterns.

Recognize the concept of brand cannibalization and its implications.

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Definitions:

Distribution Facilities

Physical locations such as warehouses and distribution centers where goods are stored, managed, and dispatched to retailers or customers, playing a critical role in the supply chain.