Question:

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Solution:

Sl no.Particulars

1 The company engaged in channel stuffing by shipping goods to customers that had not been ordered.

2 The allowance for doubtful accounts was understated because the company altered the aging of accounts receivable to reduce the number of days outstanding for delin

3 The accounts receivable clerk stole checks received in the mail and deposited them in an account that he controlled. He issued credit memos to the customers in the am

4 The company contacted a major customer and asked them to accept a major shipment of goods before year end. The customer was told that they could return the good

5 A cashier stole cash receipts that had been recorded in the cash register.

6 The company recorded "bill-and-hold sales" at year end. Although the invoices were recorded as sales before year-end, the goods were stored in the warehouse and sh

7 The company did not record credit memos for returns received in the last month of the year. The goods received were counted as part of the company's year-end physi

8 A cashier stole cash receipts by failing to record the sales in the cash register.

9 The CFO recorded fictitious credit sales at the end of the year without recording the associated cost of sales and reduction in inventory.

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