sales that are recorded improperly . 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 . Number of obsolete units this period compared to last . Salaries of marketing personnel as a percent of total inventory .
59 . Which one of the following accounts would an auditor most likely test by performing analytical procedures ? ( Points : 4 ) Sales commissions expense . Legal expenses . Repairs and maintenance expense .