ABSTRACT
ABSTRACT: This paper shows that management of earnings can be discovered when ROA vs ATO ratios are used in a histogram. The Montreal case examines an ABC-transaction (Ritzen, 2011) scheme put in place by the Italian Mafia prior to the implementation of illegal deals. Then, when suspicion of financial misconduct is first found by using Janson, Ramnath, and Yohn (2012) diagnostic tool; an additional calculation is conducted with ROA/ATO ratios. The results clearly show a beginning and an end to any management of earnings. Investigators can therefore concentrate on that period in order to gain enough evidence for Court procedures.
