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an estimate of accrued returns that reduces net income.
a reduction of net sales for an increase to the sales returns and
allowance account.
consignment goods that are returned and forwarded to third
parties.
57. Confirmations that are sent to select customers asking them to
review the current balance due the client as shown on the client's
statement and return the letters directly to the auditor indicating
whether they agree with the indicated balance, are known as (Points:
4)
direct confirmations.
indirect confirmations.
positive confirmations.
negative confirmations.
58. Which of the following is an example of the type of analytics that
an auditor would use for inventory? (Points: 4)
Number of day's sales in receivables compared to industry
averages.
Inventory turnover for the previous five years.