Review the discussion of the Ahold/U.S. Foodservice accounting fraud described in the chapter.
a. Is it wrong for a company to receive rebates on inventory purchases? Explain your answer.
b. What did Ahold do to cause the SEC to charge it with filing false and misleading financial statements?
c. What evidence related to purchase rebates would the auditor gather? How would the auditor determine that Ahold had correctly accounted for the rebates on the financial statements?