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You are the CEO of a lumber company. You were reviewing the current monthly financials and you noticed something that you feel you should investigate.

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You are the CEO of a lumber company. You were reviewing the current monthly financials and you noticed something that you feel you should investigate. You decide to perform a horizontal analysis and notice that sales have been increasing at a rate of 5% per year, while inventory has risen at a rate of 29 percent per year. 1. Could fraud be occurring? Why or why not? 2. Assuming that fraud is being committed. How would you investigate? (Ctrl)

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