Audit Wrap-Up
Please respond to the following:
- Create a scenario that demonstrates specific ways in which management could manipulate transactions impacting inventory values that the auditing team might not detect. Recommend key strategies that the auditor could implement in anticipation of such manipulation. Justify your response.
- Discuss the difference between a subsequent event and a subsequent discovery of facts, and determine the auditor’s responsibility for each event after the audit report is complete. Support your position.
………….Answer preview………..
The management may engage in fraud by manipulation of inventory so as to show a good performance in their financial statements. They may manipulate the inventory in regard the quality and pricing of the inventory, among other factors…………..
APA
603 words