The purpose of this assignment is to familiarize you with some of the ratio-analysis techniques that could indicate fraud in the financial statements

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The purpose of this assignment is to familiarize you with some of the ratio-analysis techniques that could indicate fraud in the financial statements.

The income statements, balance sheets, and selected information from the statement of cash flows have been provided for FindIt Holdings Company for the years 2001 through 2008. Your assignment is to use the techniques we’ve covered in class (and any others you’d care to try) to see if you can find any indicators of fraud in the financial statements of FindIt.

Please answer the following questions. Specifically refer to your analysis to explain your answers.*

1. Please tell me which years have been manipulated.
2. Please tell me which accounts you believe have been manipulated.
3. Identify the “red flags” in your analysis that led you to believe the financials have been misstated.

*At a minimum, discuss the following to support your answers:

• • m-score and its components
  • horizontal and vertical analysis
  • any other common ratios you believe are relevant