If a Client Experienced All of the Following Events During

question 60

Short Answer

If a client experienced all of the following events during the fiscal year, what effect would the auditor expect to see on the inventory turnover ratio?
(A) Items shipped on consignment during the last month of the year were recorded as sales.
(B) A significant number of credit memos for returned merchandise that were issued during the last month of the year were not recorded.
(C) Year-end purchases of inventory were understated by incorrectly excluding items received before the year end.