Which of the following is usually not helpful for determining the existence of a merger fraud?
A) Understanding the context of the merger.
B) Observing analytical symptoms.
C) Determining if the merger was done in accordance with GAAP.
D) Comparing after-merger book values with corresponding pre-merger book values
E) None of the above

Question

Quizplus · Accepted Answer

B: Correct; when companies merge, the result is a new entity with no history. This makes it difficult to use analytical symptoms, which are used to compare trends and changes

Which of the Following Is Usually Not Helpful for Determining