Assignment
Jessica Smith is an old friend of yours and contacted you with some questions about possible fraud in her car wash business. Jessica owns several car washes and believes that financial statement fraud for the individual car washes may be occurring. She pays each car wash manager a bonus if they earn a certain level of profits. She is worried that some managers are overstating profits to earn a higher bonus.
If Jessica is worried that the manager at each car wash may be overstating profits to earn higher bonuses, what advice could you give her to prevent this from happening? Do you have any other thoughts about this case or other situations similar to it (other small business owners like Jessica)?
How comfortable are you in using the various methods of financial statement analysis? Are there some methods that you use regularly in your current position?
It is expected that all of your full credit posts will be 2-3 paragraphs (with a paragraph consisting of several sentences) long in order for your response to be thoughtful, detailed, and substantial enough to support the point you are trying to make. Focus on making one full credit post on two separate days during the week. Avoid making multiple short, low credit posts.
2. Posts are free of plagiarism
I encourage you to use the research in your posts to our discussions. However, you must remember to give credit to your sources.
a. Always cite your source - even our text. Provide the link to your source so that we can access it, too.
b. Always use in-text citations (not just a citation at the end of your post). Include the page number if the source has multiple pages. For example (text p. 42).
c. Always place direct quotations in quotation marks. Three or more words from your source is a direct quotation.
d. Quote or use no more than 1-2 sentences from all source(s) TOTAL PER POST.