What was the impact to the organization’s financial statements?

Posted by: Pdfprep Category: IIA-CIA-Part3 Tags: , ,

A retail organization mistakenly did not include S10.000 of inventory in the physical count at the end of the year.

What was the impact to the organization’s financial statements?
A . Cost of sales and net income are understated
B . Cost of sales and net income are overstated
C . Cost of sales is understated and net income is overstated.
D . Cost of sales is overstated and net income is understated.

Answer: C

Leave a Reply

Your email address will not be published.