An auditor suspects that fictitious sales may have been recorded during the year. Which of the following analytical review results would most likely indicate that fictitious sales were recorded? Accounts receivable turnover decreased from 7.1 to 4.3 Uncollectible account write-offs increased by 10%, sales increased by 10%, and account receivable increased by 10%. Gross margin decreased from 40 to 35%. The number of day’s sales in accounts receivable decreased from 64 to 38.

An auditor suspects that fictitious sales may have been recorded during the year. Which of the following analytical review results would most likely indicate that fictitious sales were recorded?

Accounts receivable turnover decreased from 7.1 to 4.3

Uncollectible account write-offs increased by 10%, sales increased by 10%, and account receivable increased by 10%.

Gross margin decreased from 40 to 35%.

The number of day’s sales in accounts receivable decreased from 64 to 38.

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