An Auditor Noticed That Company B Had an Exorbitant Increase

question 21

Multiple Choice

An auditor noticed that company B had an exorbitant increase in sales and drastic decreases in its inventory and accounts receivables.The above statement symbolizes which fraud symptom?

• A)Accounting anomaly
• B)Internal control weakness
• C)Analytical anomaly
• D)Unusual behavior

---

Definitions:

Laws Examination

A test or series of tests evaluating an individual’s knowledge or competence in areas of law, often as part of legal education or certification.

Presumption

An assumption taken as true until evidence is presented to the contrary, often used in legal contexts to shift the burden of proof.

Eminent Domain

The power of the government to take private property for public use, with compensation to the owner.

Economically Beneficial Uses

Refers to activities or applications that result in economic benefits or gains, such as profit from land or resource utilization.