Expense manipulation designed to increase net income

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Reference no: EM13748842

The Fleming fraud involved an expense manipulation designed to increase net income.

1. Describe a substantive audit procedure that an auditor could use to determine whether financial statements are misstated by early recording of purchase rebates.

2. Why do you think that the SEC held the suppliers responsible for perpetrating the fraud? Should companies be held responsible for the actions of its customers? Give reasons.

Reference no: EM13748842

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