Question: An anonymous source advised Canada Revenue Agency (CRA) that Jim Mayers, owner of Mayers Grocery Store, has been filing fraudulent tax returns for the past

An anonymous source advised Canada Revenue Agency (CRA) that Jim Mayers, owner of Mayers Grocery Store, has been filing fraudulent tax returns for the past several years. You, a tax auditor with the CRA, are in the process of auditing Mayers Grocery Store for the year ended December 31, 2017. The tax returns for the past five years show a decreasing value for ending inventory from 2014, when Mayers bought the business, to 2016; the return for 2017 shows the same sort of decrease. You have performed a quick survey of the large store and the attached warehouse and observed that both seemed very well stocked.
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Does the information set forth above suggest anything to you that might confirm the anonymous tip? What would you do to confirm or deny your suspicions?

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