Accounting Question:
In the Module 4 discussion forum, we discussed the concept of detecting fraud internally from the management perspective using your position as an internal business leader to set up processes and detection mechanism procedures. In this module's discussion board, we will focus on the detection of fraud from the external perspective (as though you were a fraud investigator).
As you begin to assess the financial statements of a corporation, you would use a number of different tools. Please discuss the purpose of each tool/process below, along with the insight that you would expect to attain from each:
• Vertical and horizontal analysis of the income statement and balance sheet
• Cash flow analysis
• Deep-dive review of account balances
• Ratio analysis.
Please provide at least one external resource that provides insight into your approach. Include proper APA citation and reference list as part of your posting. You should consider how each financial tool provides insight into the company and help to develop a list of "red flags."
Accounting Answers:
Required: half to one page only with at least 3 references.