Winton Marx a producer of motorcycle parts has experienced poor
Winton Marx, a producer of motorcycle parts, has experienced poor income, due to foreign competition. In a move to try to undercut a possible proxy fight with dissident stockholders, Geoff Daniels, the company’s CEO, formed a shell company known as Turbo Repair Shops, Inc. The company was supposedly a regional chain of motorcycle repair shops and fictitious documents were created showing fabricated Winton Marx sales. As a result Winton Marx sales were significantly increased over the preceding year, as compared to other industry competitors who showed declines and losses.

Required:
What audit procedures would have alerted the auditor to the risk in this situation and the identification of the fraud?

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help