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Question - Assume you work for Winkin, Blinkin, and Nodd as an investigative auditor, and you have been assigned to audit Carolina Gourmet Pizza, a chain of pizzerias located in the Charlotte, North Carolina metropolitan area. After having visited each location and studying the accounting records, you have found that a large percentage of payments come from a handful of customers and are in cash. In your initial post, please address the following questions:
What red flags, if any, does this raise for you as the auditor?
How would you approach the owners of the pizza chain about this suspicious information?
What next steps should you take for this audit?
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