While Conducting an Audit, an Internal Auditor Notices an Unusual

question 91

Multiple Choice

While conducting an audit, an internal auditor notices an unusual increase in sales among a small number of units within the organization. The units also experienced persistent negative cash flows despite reported earnings and earnings growth. Which type of fraud do the auditor's findings most likely indicate?

• A) Employee collusion with customer organizations.
• B) Improper asset valuation.
• C) Inventory theft.
• D) Fictitious revenues.

Comprehend the role of cognitive and biological perspectives in explaining anxiety disorders.

Identify the symptoms of eating disorders and differentiate between them.

Understand the concepts and categories of psychological disorders.

Recognize the symptoms and diagnostic criteria for specific psychological disorders.

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Definitions:

Merchandising Company

A business that purchases finished goods for resale, making a profit on the sales margin.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, highlighting revenue, expenses, and profits or losses.

Merchandise Inventory

Goods that a company holds with the intent to sell them as part of its business operations; considered a current asset on the balance sheet.

Balance Sheet

A balance sheet is a financial statement that provides a snapshot of a company’s financial position at a specific date, showing assets, liabilities, and shareholders’ equity.