Choose a Company and locate its most recent financial statements. It would be best to choose a public company regulated by the Securities and Exchange Commission as their financial statements will be readily available through EDGAR or from their website. You may choose a nonpublic company if their financial statements are readily available for review.

• Read the financial statements, including any auditors’ reports, management’s discussion and analysis, and footnotes. Analyze the financial statements and identify fraud risk areas. Identify and explain the key areas of risk in the financial statements and the relative risk associated with each area that you have identified.
• Review any internal control narratives/documentation available on the Company and identify specific areas that would indicate susceptibility to fraud. Detail any areas of risk in internal control and the relative risk associated with each area that you have identified.
• Identify any “red flags” or warning signs that you become aware of as you read the financial statements and internal control documentation relative to the Company. Document any areas of risk in internal control and the relative risk associated with each area that you have identified.

Provide an opinion on the financial condition of the Company and determine whether, in your opinion, the Company has a high degree of risk relative to fraud.

Answer rating: 100% (QA)

I have chosen Company XYZ and located its most recent financial statements The key areas of risk in the financial statements are 1 Revenue recognition ... View the full answer