Ratio red flags: DSO jump & margin swing
This lesson is part of the course
In this lesson
You compute Brightwater's FY2026 DSO and gross margin, compare the growth of receivables with revenue and decide whether the trend is a red flag.
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Lessons in this course
- Materiality: overall, performance & trivial Locked
- Analytical procedures: expectation vs actual Locked
- Monetary unit sampling: size, interval, selection Locked
- Three-way match: PO, receipt, invoice Locked
- Duplicate payments & round-amount tests Locked
- Benford's law: the first-digit test Locked
- Journal-entry testing: weekends, after hours, users Locked
- Ratio red flags: DSO jump & margin swing Locked