An auditor noticed that Company B had an increase in sales and a large decrease in inventory and A/R balances. This may be which type of a fraud symptom?
A) Accounting anomaly
B) Internal control weakness
C) Analytical anomaly
D) Unusual behavior

Question

Quizplus · Accepted Answer

A: Accounting anomalies include bad source documents, faulty journal entries, and inaccuracies in ledgers.
B: Internal control weaknesses deal with the companies controls.
D: Unusual behavior refers to personal behavior.

An Auditor Noticed That Company B Had an Increase in Sales