An internal auditor for a large computer company suspects that returned computer systems are being repackaged as new products and shipped to other customers before the defects have been repaired. Which of the following would be the most persuasive piece of evidence in support of the auditor's suspicions?
A) Credit memos issued after year end for goods shipped before year end.
B) Evidence of returned goods in the shipping and receiving area.
C) An unusual number of customer complaints.
D) The results of a complete physical inventory taken at year end.

Question

Quizplus · Accepted Answer

An unusual number of customer complaints would be the most persuasive evidence, as it directly indicates that customers are receiving defective products, supporting the suspicion that returned systems are being repackaged and reshipped without repairs.

An Internal Auditor for a Large Computer Company Suspects That