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IIA-CIA-PART3 · Question #304

IIA-CIA-PART3 Question #304: Real Exam Question with Answer & Explanation

The correct answer is B. Cost of goods sold was understated for the year.. See the full explanation below for the reasoning.

Question

The internal audit activity has identified accounting errors that resulted in the organization overstating its net income for the fiscal year. Which of the following is the most likely cause of this overstatement?

Options

  • ABeginning inventory was overstated for the year.
  • BCost of goods sold was understated for the year.
  • CEnding inventory was understated for the year.
  • DCost of goods sold was overstated for the year.

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