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Commerce · Q171

Auditing

Graduate and Post Graduate · Commerce · question 171

Q171

While observing a client's annual physical inventory, an auditor conducted test counts for certain test counts were higher than the recorded quantities in the client's perpetual records. This situation could be the result of the client's failure to record:

A.
Purchase returns
B.
Sales returns
Answer
C.
Goods with consignor
D.
Purchase discounts

Answer: Option B

Solution

Answer: Option B
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