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Fraud by Kiting Describe the Concept of Kiting and Identify

question 7

Essay

Fraud by kiting Describe the concept of kiting and identify the best method for the auditor to use to detect kiting.


Definitions:

Marginal Tax Rate

The rate of tax imposed on your income, corresponding to each applicable tax bracket.

Average Tax Rate

Total taxes paid divided by total taxable income.

Net Working Capital

The difference between a company’s current assets and current liabilities, indicating the liquidity of the business.

Statement of Comprehensive Income

A financial report detailing all equity adjustments for a period, excluding those changes stemming from owner investments and payouts to owners.

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