An Auditor Might Is Most Likely to Suspect the Existence

question 1

Multiple Choice

An auditor might is most likely to suspect the existence of undisclosed related parties by noticing:

• A)Large sales transactions.
• B)Abnormal long collection terms for a receivable.
• C)A large number of sales to numbered corporations.
• D)A significant increase in sales over the prior year.

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Definitions:

CarMax

A used car retailer based in the United States, known for its large inventory and no-haggle pricing model, aiming to simplify the car buying and selling process.

Verizon

An American multinational telecommunications company known for its wireless services and products.

Frequency

Frequency refers to the number of times an event occurs within a specified period, often used in the context of advertising to indicate how often an ad is displayed or broadcasted.

CPM

Cost Per Thousand Impressions, a marketing metric that denotes the expense of an advertising campaign per one thousand views or impressions.