An auditor compares annual revenues and expenses with similar amounts from the prior year and investigates all changes exceeding 10%. This procedure most likely could indicate that:
A. Unrealized gains from increases in the value of available-for-sale securities were recorded in the income account for trading securities.
B. Fourth quarter payroll taxes were properly accrued and recorded, but were not paid until early in the subsequent year.
C. The annual provision for uncollectible accounts expense was inadequate because of worsening economic conditions.
D. Notice of an increase in property tax rates was received by management, but was not recorded until early in the subsequent year.
Answer: A
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