Which of the Following Is Least Likely to Aid the Auditor

question 459

Multiple Choice

Which of the following is least likely to aid the auditor in evaluating the risk of improper revenue recognition due to fraud?

• A) Analysis of sales commissions over the most recent five-year period.
• B) Comparison of sales volume, as determined from recorded revenue amounts, with production capacity.
• C) Trend analysis of revenues and sales returns by month.
• D) Comparison of revenue reported by month and by product line for the current and prior years.

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Definitions:

Retreating Glacier

A glacier that is decreasing in size and length due to melting ice, often linked to climate change.

Abandoned Mining Waste

Refers to the remains and by-products left behind after the closure or abandonment of mines, which can include hazardous materials.

Agricultural Field

Land used for farming crops or raising livestock, essential for producing food, fiber, and other agricultural products.

Bottom-up Processes

Ecological or systemic processes driven by primary producers or lower trophic levels influencing the structure and function of ecosystems.