In an Audit of Financial Statements, the Risk of the High

question 93

Multiple Choice

In an audit of financial statements, the risk of the high rate of return of products sold includes relates to which of the following?

• A) Sales that are recorded improperly.
• B) An estimate of accrued returns that reduces net income.
• C) A reduction of net sales for an increase to the sales returns and allowance account.
• D) Consignment goods that are returned and forwarded to third parties.

---

Definitions:

High Blood Pressure

A condition where the force of the blood against the artery walls is too high, potentially leading to health issues like heart disease.

Insomnia

A sleep disorder characterized by difficulty falling asleep, staying asleep, or getting restorative sleep, leading to daytime fatigue and other symptoms.

Psychological Disorders

Mental disorders characterized by patterns of behavior or thought that are significant enough to interfere with one’s functioning and well-being.

Violent Acts

Behaviors that involve the use of physical force with the intent to harm or damage someone or something.