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You are the auditor for KPDZ Corporation. You gathered comparative information for inventory and accounts payable and calculated the days purchases in accounts payable. ___________________________________________2014...................2015 Inventory.................................................$34,270...............$57,921 Accounts payable........................................$ 8,295...............$10,628 Days purchases in accounts payable................44.2 days..............44.6 days (365 days/payables turnover) Required: Prepare a list of possible concerns that you might have about potential misstatements in both accounts.
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