An analyst gathers the Beneish model M-scores below and uses a −1.78 M-score cutoff.

| Company | Current Year | Prior Year | Change in M-score |

|---------|--------------|------------|-------------------|

| Company 1 | −2.00 | −2.25 | 0.25 |

| Company 2 | −1.50 | −1.25 | −0.25 |

| Company 3 | −2.25 | −2.00 | −0.25 |

Based on this information, which company has the highest probability of earnings manipulation?