The popular press has indicated that inventory fraud is one of the biggest reasons for the proliferation
Question:
(a) Name two other high profile cases where a company has committed fraud by misstating inventory.
(b) What makes the intentional misstatement of inventory difficult to detect? How was Phar-Mor successful in fooling Coopers & Lybrand for several years with overstated inventory?
(c) To help prevent or detect the overstatement of inventory, what are some audit procedures that could be effectively employed?
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Related Book For
Auditing Cases An Interactive Learning Approach
ISBN: 978-0133852103
6th edition
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
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