Analytical procedures can be very effective in detecting inventory fraud.Which of the following analytical procedures would not be useful in detecting fraud?
A)Gross margin percentage
B)Inventory Turnover
C)Cost of sales percentage
D)Accounts receivable turnover

Question

Quizplus · Accepted Answer

Accounts receivable turnover is not directly related to inventory, so it would not be useful in detecting inventory fraud. The other options are all commonly used analytical procedures in assessing inventory and cost of sales.

Analytical Procedures Can Be Very Effective in Detecting Inventory Fraud