Profit is the difference between re

Profit is the difference between revenue and cost. Profits can be inflated by overstating revenues, underestimating costs, or both simultaneously. The false income includes the false income and the false income, as well as the confirmation of the income in advance, the provision of bad debts or the adjustment of the false income by the related party. For example, in order to achieve a certain performance indicator in the current period, according to the accrual basis, the enterprise should be included in the next period of revenue, recognized in advance in the current period to inflate profits. In addition, the enterprise can also take the aid of the assets reorganization, after carries on the internal communication to carry on the transaction with the unfair price, then falsely increases the profit 4. This requires the CPA to judge whether the transaction is fair during the audit, to find out whether the enterprise has used this means to commit fraud.