Analytical Procedures Can Be Very Effective in Detecting Inventory Fraud

question 107

Multiple Choice

Analytical procedures can be very effective in detecting inventory fraud. Which of the following analytical procedures would not be useful in detecting fraud?

• A) gross margin percentage
• B) inventory turnover
• C) cost of sales percentage
• D) accounts receivable turnover

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Definitions:

Barbaric

Pertaining to or characteristic of a very cruel, brutal, and uncivilized behavior or practice.

Social Interaction

The method through which people interact and respond to one another, creating the foundation for social connections.

Microstructures

are the patterns of relatively intimate social relations formed during face-to-face interaction. Families, friendship circles, and work associations are examples of microstructures.

Cultural Hegemony

involves the control of a culture by dominant classes and other groups to the point where their values are universally accepted as common sense.