What Type of Error Is the CPA Most Likely to Discover

question 32

Multiple Choice

What type of error is the CPA most likely to discover when he/she examines all shipping reports dated in January of 20X1, shipped FOB shipping point, which were recorded in December of 20X0 as credit sales?

• A) Accounts receivable are overstated at December 31, 20X0.
• B) Accounts receivable are understated at December 31, 20X0.
• C) Operating expenses are overstated for the 12 months ended December 31, 20X0.
• D) Sales returns and allowance are overstated at December 31, 20X0.

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