Maple Company Has an Increase in Purchases from Specific Vendors

question 46

Multiple Choice

Maple Company has an increase in purchases from specific vendors and an increase in raw materials inventory for the items purchased from these vendors.Sales for the company have not increased and are not forecast to increase.From this information an auditor might suspect

• A)An increase in obsolete raw material inventory.
• B)Theft of raw material inventory.
• C)Kickbacks from vendors
• D)Poor security over raw material inventory.

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Definitions:

In Situ Conservation

The protection of genetic material, species, or ecosystems in their natural environment.

Seed Bank

A repository or collection of seeds preserved for the purpose of biodiversity conservation and agricultural sustainability.

Tropical Rain Forests

Dense forests found in regions near the equator, characterized by high rainfall and biodiversity.

Internal Criticism

A method in historiography or textual analysis where the authenticity and credibility of a document or source is evaluated.