02 Jul Final Accounting Assignment.
Question Description
Name of the entity: Phar-Mor(Discount store company).
•The purpose of the project: Showing how ineffective internal control over Inventory could lead a business to bankruptcy.
•Business case- element and issues:
This management fraud draws our attention since it committed a fraud of $500 Million by overstating the inventory. (issue) We start gathering information that explains how such a huge fraud could be occurred while external auditing is practicing their regular tasks by inspecting physical assets, documents and other performances.
Why inventory is important to the business?.
• plans to implement a good internal control over inventory which could have prevented the fraud .
•New systems that prevent what happened with the company ..
• How could they have avoided that .
•In the end explain it with numbers and facts.
(Also make a small power point of the research for presentation)
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