Auditors realize that XYZ is experiencing increasing levels of inventory while its competitors' inventory levels remain stable. All of the following are likely explanations except:
A) The increase in inventory is a result of poor management decisions
B) The increase in inventory is a result of increased sales expectations
C) The increase in inventory is a result of fraud
D) All of the above are possible explanations

Question

Quizplus · Accepted Answer

All of the options A, B, and C are possible explanations for increasing inventory levels, so option D is incorrect as it states that all are possible explanations.

Auditors Realize That XYZ Is Experiencing Increasing Levels of Inventory