The BOD (Board of Directors) minutes show that the sales could have increased by 10%.However, Mr. Unum explained that the sales did not meet expectations; hence Apollo increased their prices. The decline in sales by 0.014% is due to the increased prices. Additionally, the proportion of sales in the net sales increased by 102.33% as at 12-31-2013 and by 105.32% as at 12-31-2014.The increased percentages show that there could be a misstatement in the financial records.
b. Sales Returns
The percentage change in the sales returns indicates a possible misstatement that may have occurred due to the misstatements Continue reading...