Jane owns a furniture store with three locations. It is the end of the fiscal year and
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Jane has some significant debt and, without a profit, it is likely the line of credit will not be renewed. You are the CPA and notice that some of the inventory counts look a bit funny; the stores could not possibly own that many couches! When you ask Jane about it, she smiles and says, "We have count sheets, which I have approved, so don't stress over it. Even if they are a bit high, the documentation is there so we are covered." How do you feel about this? What would you do in this situation?
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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