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Red Flags Exist When It Comes to Identifying Financial Statement

question 41

Essay

Red flags exist when it comes to identifying financial statement fraud. Name and describe three of them.


Definitions:

Logical

Pertaining to or characterized by clear, systematic reasoning and thought.

Rational

Based on logic or reason; capable of coherent thought processes leading to sound decisions or judgments.

Continuum

A continuous sequence in which adjacent elements are not perceivably different from each other, though the extremes are quite distinct.

Intense Relationships

Relationships characterized by strong emotions, extreme closeness or dependency, and often turbulent interactions.

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