Which of the following situations provides the most likely indication that fraud exists?

a. Exelon Corporation's earnings per share this quarter is 10% higher than last quarter.

b. Quantum Corporation's sales this year is 20% higher than last year's sales.

c. Papillon Product Inc.'s profits have increased each for the last 5 years, but its cash reserves have decreased steadily in the same time period.

d. Bobadilla Bookstores opened 10 new stores during the most recent quarter.

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The most favorable opinion that an auditor can express is the

a. Unqualified opinion.

b. Qualified opinion.

c. Adverse opinion.

d. Disclaimer.

7. 10.000 points Which of the following situations provides the most likely indication that fraud exists? O Exelon Corporation's earnings per share this quarter is 10% higher than last quarter. O Quantum Corporation's sales this year is 20% higher than last year's sales O Papillon Product Inc s profits have increased each for the last 5 years, but its cash reserves have decreased steadily in the same time period O Bobadilla Bookstores opened 10 new stores during the most recent quarter