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* How can forensic accountants use financial ratios and trend analysis to detect signs of financial fraud within an organization?Forensic accountants often analyze financial ratios
How can forensic accountants use financial ratios and trend analysis to detect signs of financial fraud within an organization?Forensic accountants often analyze financial ratios and trends over time to identify inconsistencies that may indicate fraud. They compare current ratios to historical data, industry standards, and peer performance to spot abnormalities. Ratios such as profitability, liquidity, and leverage can reveal discrepancies that warrant further investigation. By examining these trends, forensic accountants can identify patterns of behavior that suggest manipulation or misrepresentation of financial statements. How effective is this method in uncovering fraud?
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