While conducting the annual audit of Bluebird Company’s fina…

Questions

While cоnducting the аnnuаl аudit оf Bluebird Cоmpany's financial statements, Elsie Finnegan, CFE, CPA, came across some fishy findings. The company recorded several large and unusual sales at the end of the fiscal year to customers Elsie had never heard of. Further, all of these sales occurred within the company's specialty division, which had previously been in danger of closing due to recurring losses. Based on these findings, what type of financial statement fraud is likely occurring?

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