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Essay

Phar-Mor Inc.

Essay specific features

 

Issue:

Business

 

Written by:

Bobbie H

 

Date added:

May 16, 2014

 

Level:

University

 

Grade:

B

 

No of pages / words:

2 / 383

 

Was viewed:

10100 times

 

Rating of current essay:

 
Essay content:

Coopers & Lybrand won the Phar-Mor, Inc. account with a very low bid, so they wanted to limit their costs by testing only 4 out of the 129 stores. Phar-Mor made false entries to the inventory records to cover up money embezzled by management and they did this by monitoring the auditors’ test count procedures and found out which 4 stores were being tested in advance...
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This gave them the opportunity to stock up chosen stores with inventories from other locations and adjusted the books accordingly. 4. Some audit procedures that can detect overstatement of inventory: • Pay attention to the management assertion that inventory quantities exist. • Review their inventory counting procedures...
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