Anna Performed a Trend Analysis of Accounts Receivable (AR)balances and Computed

question 13

Multiple Choice

Anna performed a trend analysis of accounts receivable (AR) balances and computed the days to collect AR ratio.When she compared the results of her analysis with industry averages,she found the results were unusually low compared to the industry norm.Anna can conclude that

• A)the accounts receivable balance is wrong.
• B)the accounts receivable has an increased risk of misstatement.
• C)the integrity of the company's management is questionable.
• D)she will not be able to rely on internal controls for accounts receivable for audit purposes.

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