Analytical Procedures Can Be Very Effective in Detecting Inventory Fraud

question 5

Multiple Choice

Analytical procedures can be very effective in detecting inventory fraud. Which of the following analytical procedures would NOT be useful in detecting fraud?

• A) Gross margin percentage
• B) Inventory Turnover
• C) Cost of sales percentage
• D) Accounts payable turnover

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Definitions:

Amphibians

Cold-blooded vertebrates that live both in water and on land at different stages of their life, such as frogs and salamanders.

Artificial Insemination

The impregnation of a female by artificially introducing sperm from a male.

Endangered Species

Species of animals or plants that are at a significant risk of extinction due to a rapid decrease in their population or loss of their natural habitat.

Captive Breeding

The process of breeding animals in controlled environments within zoos, aquariums, or breeding centers to preserve species.