EX 5-3: You are the auditor for KPDZ Corporation. You gathered comparative information for inventory and accounts payable and calculated the days purchases in accounts payable.

Inventory Number

2014

2015

Inventory

$34,270

$57,921

Accounts payable

$8,295

$10,628

Days purchases in accounts payable (365 days / payables turnover)

44.2 days

$44.6 days

Required: Determine possible concerns that you might have about potential misstatements in both accounts.