Contemporary Auditing 10th Edition by Michael Knapp

Exercise 52

Identify specific audit procedures that might have led to the detection of the following accounting irregularities perpetrated by Crazy Eddie personnel: (a) the falsification of inventory count sheets, (b) the bogus debit memos for accounts payable, (c) the recording of transhipping transactions as retail sales, and (d) the inclusion of consigned merchandise in year-end inventory.