Hardware Suppliers reports a net income of $165,000. Included in net income is gain on the sale of land $20,000. A comparison of this year's and last year's balance sheets reveals an increase in accounts receivable of $35,000, and increase in inventory of $20,000, and a decrease in accounts payable of $55,000.

1. The external auditor conducts the financial audit and is concerned with the overstatement of assets. Why would the auditor have these concerns (and what would auditor be reviewing) over the area of accounts receivable, inventory, or accounts payable (select one)?