Question
The following are excerpts from the conversation of the fraud examiner and the auditor of Robotics Inc., the surviving entity in the recently merged AI
The following are excerpts from the conversation of the fraud examiner and the auditor of Robotics Inc., the surviving entity in the recently merged AI International and Robotics Inc.:
Fraud examiner: "No! Something is wrong with the consolidated financials. The consolidated assets increased tenfolds. How could that be possible?"
Auditor: "AI International has quite a large amount of assets as compared with Robotics Inc."
Fraud examiner: "Exactly my point, why and how Robotics could acquire AI if the former is bigger."
Auditor: "Robotics engineering is much advanced as compared with AI."
Required:
1. Provide two analytical and/or documentary symptoms to support the fraud examiner's suspicion. (3 points)
2. Provide two analytical and/or documentary symptoms to support the auditor's opinion. (2 points)
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