The auditor's determination that the number of days' sales in accounts receivable increased from 44 days to 100 days would usually be found through the use of ratio analysis.

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The number of days' sales in accounts receivable can be calculated using the accounts receivable turnover ratio, which is calculated by dividing net credit sales by the average accounts receivable balance. If this ratio decreases, it indicates that the company is collecting its receivables more quickly, resulting in a decrease in the number of days' sales in accounts receivable. Conversely, if the ratio increases, it indicates that the company is collecting its receivables more slowly, resulting in an increase in the number of days' sales in accounts receivable. Therefore, the auditor would use ratio analysis to determine the change in the number of days' sales in accounts receivable.

The Auditor's Determination That the Number of Days' Sales in Accounts