Auditors Sometimes Use Comparisons of Ratios as Audit Evidence

question 3

Multiple Choice

Auditors sometimes use comparisons of ratios as audit evidence. An unexplained decrease in the ratio of gross profit to sales may suggest which of the following possibilities?

• A)Unrecorded purchases.
• B)Unrecorded sales.
• C)Merchandise purchases being charged to selling and general expense.
• D)Fictitious sales.

---

Definitions:

Silent Comedy Duo

A pair of comedic actors who perform together in silent films, using physical comedy and visual gags to elicit laughter without spoken dialogue.

Cathartic Destruction

A concept in storytelling where the destruction of something leads to a moral or emotional renewal for the characters.

Famous Silent Film Director

A director known for creating films in the era before movies had synchronized sound, contributing significantly to the art and narrative style of early cinema.

Silent Film Star

An actor or actress who gained fame and recognition for performances in silent films, where dialogue was conveyed through mime and title cards.