Maple Company Has an Increase in Purchases from Specific Vendors

question 35

Multiple Choice

Maple Company has an increase in purchases from specific vendors and an increase in raw materials inventory for the items purchased from these vendors. Sales for the company have not increased and are not forecast to increase. From this information an auditor might suspect

• A)an increase in obsolete raw material inventory.
• B)theft of raw material inventory.
• C)kickbacks from vendors.
• D)poor security over raw material inventory.

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Definitions:

Chromatin Strands

Fibers made of DNA and proteins (histones) that tightly pack together to form chromosomes within the nucleus of a cell.

Cytokinesis

Division of the cytoplasm during cell division.

Internal Membrane Surface

This refers to the surface area within a cell that is bounded by the cell's internal membranes, such as those of the endoplasmic reticulum or mitochondria.

Membrane Channel Protein

Proteins that form pores in the cell membrane allowing the selective passage of ions and molecules in and out of cells.