While spotting red flags is difficult, vertical and horizontal financial statement analysis introduces a straightforward approach to fraud detection. Evaluate Company A’s Five Year Financial Data, please see the attached. (a) Perform horizontal analysis of the above data to indicate any potential red flags regarding possible overstatement of sales. (b) Perform vertical analysis of the above data to indicate any potential red flags regarding possible overstatement of the COGS.

While spotting red flags is difficult, vertical and horizontal financial statement analysis introduces a straightforward approach to fraud detection. Evaluate Company A’s Five Year Financial Data, please see the attached. (a) Perform horizontal analysis of the above data to indicate any potential red flags regarding possible overstatement of sales. (b) Perform vertical analysis of the above data to indicate any potential red flags regarding possible overstatement of the COGS.

Corporate Financial Accounting

15th Edition

ISBN:9781337398169

Author:Carl Warren, Jeff Jones

Publisher:Carl Warren, Jeff Jones

Chapter14: Financial Statement Analysis

Section: Chapter Questions

Problem 14.6EX: a. (1) Current year working capital. 1,090,000 Current position analysis The following data were...

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