In an Audit of Financial Statements,risks Related to a High

question 53

Multiple Choice

In an audit of financial statements,risks related to a high rate of return of products sold include which of the following?

• A)Sales that are recorded improperly.
• B)An estimate of accrued returns that reduces net income.
• C)A reduction of net sales for an increase to the sales returns and allowance account.
• D)Consignment goods that are returned and forwarded to third parties.

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Definitions:

Irrelevant Detail

Information that is not pertinent or connected to the main topic or argument.

Topic Sentence

A sentence that summarizes the main idea of a paragraph or section of a text.

Misspelled Words

Words that are written with incorrect letter sequences, which can lead to misunderstanding and can negatively impact the clarity of communication.

Look-alikes/Sound-alikes

Terms or items that are similar in appearance or sound, potentially leading to confusion.