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 .