L16 notes_Part_2 - prior years? Didn’t you realize that...

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© W.R. Knechel Inventory: Audit Failures Pharmor Similarly in the case of Pharmor, the auditors told the client the four locations out of 320 that they were intending to visit. The plaintiff attorney asked why they would tell the client. There are two responses. 1.Realized it could affect the quality of the audit. 2. Were ignorant of its effect A similar situation arises when an auditor leaves the firm to work for the client. If a undetected fraud occurs, then the plaintiff’s attorney ask why you approached the audit the same way as in
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Unformatted text preview: prior years? Didn’t you realize that the company had a knowledgeable spy and that your predictability facilitated the fraud? Again, the stupidity defense is the only workable defense. © W.R. Knechel Supply Chain: Substantive Tests Inventory Examination Inventory Price Tests - Purchased inventory - Tests of standard costs Inventory Turnover and Obsolescence Tests of Inventory Summary Inventory Cutoff Confirmation Production...
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This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

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L16 notes_Part_2 - prior years? Didn’t you realize that...

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