An auditor noted that client sales increased 10 percent for the year. At the same time COGS as a percentage of sales had decreased from 45 percent to 40 percent and year-end accounts receivable had increased by 8 percent
Based on the information above, the auditor interviewed the sales manager who stated that the increase in sales without a corresponding increase in COGS was due to a price increase enacted by the company during the year. How would the auditor test the sales manager’s representation?
A. Vouch vender invoices to payments made after year-end
B. Obtain copies of all price lists in use during the year and vouch the prices to sales invoices
C. Perform addition inquiries wiht sales personnnel
D. Send confirmations asking customers about unit prices paid for product