Question: 1. By using SPI-L to purchase the inventory how does that help SPI-X maintain its debt-to-equity ratio and receive the monies needed to get through

1. By using SPI-L to purchase the inventory how does that help SPI-X maintain its debt-to-equity ratio and receive the monies needed to get through the cash crunch. Please explain. (8 marks)

2. As the auditor for the upcoming year, and you see these transactions what are some procedures you would consider and specifically what tests of controls and/or substantive procedures would lead you to detect this plan?

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