4. Identify Fraudulent activity in a company 5. Potential misstatements in balance sheet accounts, example: 2018 Inventory $34,270 Accounts payable S 8,295 Days purchases in accounts payable (365 days/payables turnover) 44.2 days 2019 S57,921 $10,628 44.6 days 5. Misstatements due to particular scenario eg DEPRECIATION for example: A. Over/Understatement in depreciation expense and accumulated depreciation 8. Expensing amounts that should be capitalized C. Over/Understatement in insurance expense and prepaid insurance 4. Identify Fraudulent activity in a company 5. Potential misstatements in balance sheet accounts, example: 2018 Inventory $34,270 Accounts payable S 8,295 Days purchases in accounts payable (365 days/payables turnover) 44.2 days 2019 S57,921 $10,628 44.6 days 5. Misstatements due to particular scenario eg DEPRECIATION for example: A. Over/Understatement in depreciation expense and accumulated depreciation 8. Expensing amounts that should be capitalized C. Over/Understatement in insurance expense and prepaid insurance