An Auditor Is Most Likely to Suspect the Existence of Undisclosed

question 4

Multiple Choice

An auditor is most likely to suspect the existence of undisclosed related parties by noticing _______.

• A)large-sales transactions
• B)abnormally long collection terms for a receivable
• C)a large number of sales to numbered corporations
• D)a significant increase in sales over the prior year

---

Definitions:

Standard Deck

A set of 52 playing cards, divided into four suits, each containing 13 ranks.

Denominations

Refers to the various religious movements or entities within a larger faith; can also apply to the categorization of currency.

Federal Holidays

Designated days of celebration or remembrance recognized by the federal government, during which non-essential federal government offices are closed.

Sample Space

The set of all possible outcomes or events in a probability experiment.