In the planning stage of an audit, auditors frequently consider certain financial ratios. Foreitherof the following two ratios, which are at unusual levels, please stateonekind oferror or fraudwhich would explain why the ratio is at an unusual level this year.

Ratio #1The number of days of sales in accounts receivable has increased from 35 to 60. The industry average is34.[Days of sales in accounts receivable = {ending accounts receivable /sales}*365]

ORRatio # 2Salesmen's commission expense = 4% of sales. Last year it equaled 7%.