Question
In auditing sale and cash collection cycle , you noted the following changes in ratios: Current Last Year Accounts Receivable Turnover 2.8 6.3 Gross Profit
In auditing sale and cash collection cycle, you noted the following changes in ratios:
Current Last Year
Accounts Receivable Turnover 2.8 6.3
Gross Profit 15% 8%
You decided to collect more evidence and then found the following:
Current Last Year
Inventory Turnover 7.3 4.2
With these data, as the auditor, what would you conclude and what would you do next?
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Surviving An IRS Tax Audit
Authors: Frederick W. Daily
3rd Edition
1413318649, 978-1413318647
