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Concealed Cost of Goods Sold Fluctuation in the cost of goods sold has a direct impact in company income statement by inating the gross profit.
Concealed Cost of Goods Sold Fluctuation in the cost of goods sold has a direct impact in company income statement by inating the gross profit. Reduction of the cost of goods sold towards the end of period can be suspected as fraudulent transaction. In the sales transaction entries for J 2953 and JESS-4, the cost of lumber is missing with the amount of $6530.1 and $4897.575. The missing amounts are adjusted in the Accounts Receivables in the same journal entries to match the debit and credit amount. And the debit and credit values in J2954 entered with a formula, 75% of the amounts in J2953 {Appendix 2! which looks suspicious. In transactions 12965 and 52966, the cost of hardware of transactions J2953 and J2954 are reversed back by adjusting entry from CEO Anthony Caputo. Total concealed cost of goods sold in J2953, J2954, 12965 and JZQES is $265,389.215 flu addition, the false sales transaction of J2949, J2950, 12951 and J2952 are recorded without the cost of goods sold. Which makes the revenue goes higher without relative costs
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