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US Foodservice & Vendor Payments
Problem 1: Using the inventory audit procedures, describe how the fraud perpetrated by US Foodservice might have been uncovered. Would industry knowledge of the promotional allowances have helped the auditors to design procedures to detect this fraud?
Problem 2: Do you think that if the vendors cooperated in the fraud by confirming fictitious allowances, this affected the chances that the auditors were successful in detecting it?
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