Assume you are hired as a fraud auditor to examine the assets of a company that recently filed Chapter 11 bankruptcy. The company manufactures and sells circuit boards for children’s computerized toys. You have access to its financial statements and warehouses. The company is a closely held corporation. Some suggestions indicate that the company is fraudulently concealing assets. What are three red flags that you would look for to indicate fraudulent asset concealment and why?

Assume you are hired as a fraud auditor to examine the assets of a company that recently filed Chapter 11 bankruptcy. The company manufactures and sells circuit boards for children’s computerized toys. You have access to its financial statements and warehouses. The company is a closely held corporation. Some suggestions indicate that the company is fraudulently concealing assets.
What are three red flags that you would look for to indicate fraudulent asset concealment and why?