2. In the audit of Worldwide Wholesale Company, you calculated extensive ratios and trend analysis as...

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2. In the audit of Worldwide Wholesale Company, you calculated extensive ratios and trend analysis as part a. of your analytical procedures and identified the following: The number of days' sales in accounts receivable has steadily increased over three years. b. The allowance for uncollectible accounts as a percentage of accounts receivable has steadily decreased for three years. C. Sales commission expense as a percent of sales was constant for the last two years but has increased significantly in the current year. But the commission rate given to salespeople has not changed. What is the 2-potential significance of these changes in ratios or trends? State 2 follow-up procedures you would perform to determine whether a material misstatement exists (2 pts). Use the back-side to answer Q2. 2. In the audit of Worldwide Wholesale Company, you calculated extensive ratios and trend analysis as part a. of your analytical procedures and identified the following: The number of days' sales in accounts receivable has steadily increased over three years. b. The allowance for uncollectible accounts as a percentage of accounts receivable has steadily decreased for three years. C. Sales commission expense as a percent of sales was constant for the last two years but has increased significantly in the current year. But the commission rate given to salespeople has not changed. What is the 2-potential significance of these changes in ratios or trends? State 2 follow-up procedures you would perform to determine whether a material misstatement exists (2 pts). Use the back-side to answer Q2.