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Fraud examination 6e ch 6 For Short Case #7, CEO has performed horizontal analysis on financials The company financials have shown that sales have been

Fraud examination 6e ch 6

For Short Case #7, CEO has performed horizontal analysis on financials

The company financials have shown that sales have been increasing at 3% rate per year, and inventory has risen at 29% per year.

#1: Could fraud be occurring? Why or Why not?

#2: Assuming that fraud is being committed, how would you investigate?

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