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of products sold includes that of (Points: 4)
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.