The following are excerpts from the conversation of the fraud examiner and the auditor of Robotics Inc., the surviving entity in the recently merged AI International and Robotics Inc.: Fraud examiner: "No! Something is wrong with the consolidated financials. The consolidated assets increased tenfolds. How could that be possible?"

Auditor: "AI International has quite a large amount of assets as compared with Robotics Inc."

Fraud examiner: "Exactly my point, why and how Robotics could acquire AI if the former is bigger."

Auditor: "Robotics engineering is much advanced as compared with AI."

Required:

1. Provide two analytical and/or documentary symptoms to support the fraud examiner's suspicion. 

2. Provide two analytical and/or documentary symptoms to support the auditor's opinion. 

Answer rating: 100% (QA)

Answer 1 For Fraud Examiner it would be because the AI has more assets ... View the full answer