B. You are the newly hired Auditor of a large distributor company. One day you are called by the Chairman of the Audit Committee and was directed to analyze and interpret the situations as presented below.

1.

Two (2) delivery trucks full of inventory items were not allowed to be included in the actual count. As claimed by the warehouse supervisor, these are for delivery to the customers.

2.

Accounts receivable without customers' subsidiary records.

3.

Sales revenue growth shows an upward trend with minimal increase in cost of goods sold.

4

Significant discrepancies on physical count as compared with the inventory records.

5.

Large percent of revenues booked in the fourth quarter of Year 1 and large percent of sales returns booked in the first quarter of Year 2.

In each of the situation above, analyze and evaluate, then decide whether it is or not a symptom of a revenue or inventory fraud. Explain your answer.