The chapter highlights an inventory fraud case at Crazy Eddie. Unfortunately there have been many other serious inventory frauds where the auditors were fooled by illegal acts. A few of these cases include (1) Comptronix Corporation, (2) Leslie Fay Company, (3) Laribee Manufacturing Company, and (4) Phar-Mor drug stores.

Do a computer search of one of these cases and explain how inventory was used to commit the fraud. List some ways the auditors can lessen the chance such frauds could go undetected.