An auditor is most likely to suspect the existence of undisclosed related parties by noticing _______.
A)large-sales transactions
B)abnormally long collection terms for a receivable
C)a large number of sales to numbered corporations
D)a significant increase in sales over the prior year

Question

Quizplus · Accepted Answer

Abnormally long collection terms for a receivable may indicate transactions with related parties, as these terms might not be consistent with normal business practices.

An Auditor Is Most Likely to Suspect the Existence of Undisclosed