As a fraud investigator, your task is to use ratios to identify analytical fraud symptoms that are tied to revenue. The ratio's change is the most crucial factor to consider while evaluating these ratios.
Which ratio is it?
- A ratio in mathematics shows how many times one number is contained in another.
- For instance, if a dish of fruit contains eight oranges and six lemons, the ratio of oranges to lemons is eight to six.
- The ratio of oranges to the overall amount of fruit is 8:14, and the ratio of lemons to oranges is 6:8.
- Profitability ratios, debt or leverage ratios, activity ratios or efficiency ratios, liquidity ratios, solvency ratios, earnings ratios, turnover ratios, and demand ratios are a few basic types of ratios used in ratio analysis.
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