Auditors Sometimes Use Ratios as Audit Evidence

question 83

Multiple Choice

Auditors sometimes use ratios as audit evidence. For example, an unexplained increase in the ratio of gross profit to sales may suggest which of the following possibilities?

• A)Fictitious purchases.
• B)Fictitious sales.
• C)Selling and general expenses erroneously being recorded as merchandise purchases.
• D)Unrecorded sales.

Understand the mechanisms and effects of different classes of drugs, including stimulants, depressants, and hallucinogenics.

Grasp the processes involved in suppressing versus repressing thoughts and their psychological implications.

Understand the characteristics of REM sleep and its importance to psychological functioning.

Appreciate the role of nonconscious processes in daily life.

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Definitions:

Political Skill

The ability to effectively understand others at work and to use such knowledge to influence others to act in ways that enhance one’s personal or organizational objectives.

Dimensions

Aspects or features that can be measured in terms of length, width, height, or depth.

Gossip

Informal and often sensational talk about other people that may not be confirmed as true.

Accuracy

The level of correctness or precision in information, measurements, or outcomes.