Which of the following situations would raise an auditor's concern about the risk of fraudulent reporting?   Inability to generate positive cash flows from operations, while reporting large increases in earnings, Management's lack of interest in increasing the dividend paid on common stock, Large amounts of liquid assets that are easily convertible into cash, Inability to borrow necessary capital without obtaining waivers on debt covenants

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Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.