Exhibit presents various ways inventory accounts have been used to perpetrate financial statement fraud Explain how the following inventory misstatements would cause the financial statements to also be misstated, and what audit procedures might be used to catch these misstatements a Overstate endin...

a This misstatement has the potential to understate cost of goods sold or shrinkage related expenses ...

Exhibit presents various ways inventory accounts have been used to perpetrate financial statement fraud. Explain how the

Question:

Exhibit presents various ways inventory accounts have been used to perpetrate financial statement fraud. Explain how the following inventory misstatements would cause the to also be misstated, and what audit procedures might be used to catch these misstatements.
a. Overstate
b. Overstate inventory in transit
c. Fail to write inventory down from cost to market

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...