An Auditor Noted That Client Sales Had Increased 10 Percent

question 68

Multiple Choice

An auditor noted that client sales had increased 10 percent for the year. At the same time, cost of goods sold as a percentage of sales had decreased from 45 percent to 40 percent and year-end accounts receivable had increased by 8 percent. The auditor is most likely concerned about:

• A)unrecorded costs.
• B)improper credit approvals.
• C)improper sales cut-off.
• D)fictitious sales.

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Definitions:

Attentional Capture

A phenomenon where an individual’s attention is involuntarily drawn towards a particular stimulus, often due to its novelty or salience.

Involuntary Shift

An automatic redirection of attention that occurs without the individual's intentional control, often in response to a novel or significant event.

Viewer

An entity or person observing or consuming content, such as a video, an artwork, or an event.

ERP Results

Data obtained from Event-Related Potentials, which are brain responses measured using electroencephalography (EEG) to specific sensory, cognitive, or motor events.