Question
A companys financial records show that its annual revenue increased from $1.2 million to $1.8 million over a three-year period. However, upon closer examination, a
A company’s financial records show that its annual revenue increased from $1.2 million to $1.8 million over a three-year period. However, upon closer examination, a fraud examiner discovered that the increase in revenue was the result of fraudulent activities by the company’s management. The examiner determined that the actual revenue for the first year was $1.2 million, but the reported revenue for the second and third years were overstated by 20% and 40%, respectively. Calculate the amount of the fraudulent revenue reported for each of the three years, as well as the total amount of the fraudulent revenue for the entire period.
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
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