User Account

All Pages

Which company displays more of a red flag for fraud

Assignment Help Accounting Basics
Reference no: EM132608087

When performing a horizontal trend analysis of two companies, an auditor notices the following ratios:

Gross profit percentage Company A yr 1= 30.2%, yr 2 = 30.9% yr 3 = 30.1%

Company B yr 1 = 32.5%, yr 2 = 29.2%, yr 3= 32.0%

The industry average for these years was 29.4%.

Question 1: Which company displays more of a red flag for fraud than the other? Explain, and can you name the type of management fraud we auditors call this type of financial statement fraud?

Reference no: EM132608087

Questions Cloud

Find the predetermined overhead rate : Company's production costs for the year were: direct labor, $30,000; direct materials, $50,000; Find the predetermined overhead rate
Culmination of the life span developmental process : Prepare a paper in which you analyze late adulthood and the death of an individual as a culmination of the life span developmental process.
List 5 methods of determining training needs of staff : List 5 methods of determining training needs of staff. List 5 training techniques to encourage team development and improvement
New strategy without disrupting the organization : As a corporate leader, discuss how would you implement a new strategy without disrupting the organization.
Which company displays more of a red flag for fraud : Which company displays more of a red flag for fraud than the other? Explain, and can you name the type of management fraud we auditors call
Identify ways change fatigue can be avoided : Identify ways change fatigue can be avoided in an organization where innovation and change are constant.
What happens when change is not managed : Evaluate what happens when change is not managed within an organization and what impact can it have on employees.
Describe one way where the sales invoices are generated : Describe one way where the sales invoices are generated without the cooperation from customers and the customers don't even know.
Expectations for a business message : Understanding your audience and their expectations for a business message is critical for effective communication.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Write a memo to matthew outlining the key problems

Write a memo to Matthew outlining the key problems with the statement of financial position prepared, with references made clearly to requirements

  Sweetman co signed a contract to lease space in a building

sweetman co signed a contract to lease space in a building for 15 years. the lease contract calls for annual renatl

  Compute the amount of the work in process inventory

Work in process inventory, beginning of the year $35,000. Compute the amount of the work in process inventory on hand at year-end

  Statement of partners capital for the year

Determine the allocation of income for each of these three years and prepare in appropriate form a statement of partners' capital for the year ending December 31, 2013.

  Prepare the company cash budget for june in good form

Prepare the company's cash budget for June in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance

  Indicate if it is relevant or not to the related decision

Indicate if it is relevant or not to the related decision. For those costs determined to be irrelevant, briefly explain why.

  Analyze gaap and ethical implications of reporting method

MBA6014- Assume the role of a manager, employee, or an investor, and in 1-2 pages analyze the GAAP and ethical implications of each reporting method in a hypothetical company.

  The adams company a merchandising firm has budgeted its

the adams company a merchandising firm has budgeted its activity for november according to the following

  What is brian basis in the inventory

Inventory with a basis of $15,000 and a FMV of $40,000. What is Brian's basis in the inventory and what is his recognized gain or loss, if any?

  What is the total cost of Job

Job #65 had a total prime cost of $6,700. #65 took 40 machine-hours in Fabricating, 100 DL hours in Assembly, What is the total cost of Job #65

  Adjusted trial balance to prepare wilson trucking

Use the above adjusted trial balance to prepare Wilson Trucking Company's classified balance sheet as of December 31, 2013.

  Compute current ratio for each year and discuss any trends

Compute the current ratio for each year and discuss any trends. Do you feel that the company is sufficiently liquid? Explain

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd