Which of the Following Might Be Detected by an Auditor's

question 18

Multiple Choice

Which of the following might be detected by an auditor's review of the entity's sales cutoff?

• A)Excessive goods returned for credit.
• B)Unrecorded sales discounts.
• C)Lapping of year-end accounts receivable.
• D)Overstated sales for the year.

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Definitions:

Parametric Statistics

Statistical methods that assume the data follows a particular distribution, often used for hypothesis testing.

Categorical Variables

Categorical variables are types of variables in statistics that represent categories, possessing qualitative properties that differentiate one group from another.

One-sample Chi-square

A statistical test used to determine whether there is a significant difference between the observed frequencies and the expected frequencies in one categorical dataset.

Two-sample Chi-square

The Two-sample Chi-square test is a statistical method used to determine if there is a significant difference between the distributions of two categorical variables.