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(Solution) - ABCDE Technologies Inc designs manufactures and markets an

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ABCDE Technologies, Inc., designs, manufactures, and markets an extensive line of PC cards. The company sells its PC cards primarily to original equipment manufacturers (OEMs) for industrial and commercial applications in a market with intense competition. In fact, many OEM companies ran into financial difficulty in 2008 because of fierce competition. The following tables are part of the company?s financial statements for 20x1 and 20x2:

1. Determine the red flags that exist in these financial statements. Describe the scenarios that might contain these symptoms.
2. Based upon the red flags and scenarios you identified, determine what types of financial statement fraud the company may be involvedin.


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This question was answered on: Jul 11, 2017

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