Which of the following situations provides the most likely indication that fraud exists?
A) Exelon Corporation's earnings per share this quarter is 10% higher than last quarter.
B) Quantum Corporation's sales this year is 20% higher than last year's sales.
C) Papillon Product Inc.'s profits have increased each for the last 5 years, but its cash reserves have decreased steadily in the same time period.
D) Bobadilla Bookstores opened 10 new stores during the most recent quarter.
Correct Answer:
Verified
Q30: A bank deposit made on June 30
Q31: The most effective way to reduce opportunities
Q32: Check no. 147 for $200 was outstanding
Q33: Independent auditors are
A) responsible for discovering fraud
B)
Q34: Osborn Company's unadjusted book balance at June
Q36: An unqualified audit opinion:
A) Should be ignored
Q37: Which of the following would result in
Q38: The following are examples of physical control
Q39: The most favorable opinion that an auditor
Q40: The confidentiality rules in the AICPA's code
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents