Which of the following can be validly concluded from the auditor’s statement?

An internal auditor provided the following statement about division A’s performance during the month: "Because supplies of raw material X were scarce, division A’s profits declined by 15 percent."

Which of the following can be validly concluded from the auditor’s statement?

I. Division A’s production level declined by 15 percent.

II. Division A could have sold more products than it produced.

III. Division A usually sells all of the products that it produces.
A . I only
B . II only
C . III only
D . I and II only

View Answer

Answer: B