Instructions:

Part A:

1. Explain the difference between an audit, a fraud investigation, and a forensic accounting job.

Part B:

Read the Case Discussion: That Way Lies Madness and answer the following questions:

1. Summary of the fraud that Crazy Eddie and his family had committed.
2. Identify specific audit procedures that could have led to the detection of the following accounting irregularities by Crazy Eddie employees:
   1. Falsification of the inventory account sheet.
   2. The inclusion of consignment goods in the year-end inventory.