Hardware Suppliers reports a net income of $165,000. Included in net income is gain on the sale of land $20,000. A compa
Posted: Sun May 29, 2022 8:46 pm
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.
Question: 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)?
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.
Question: 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)?