In 2003, the Securities and Exchange Commission released an Accounting and Auditing Enforcement Release (AAER) describing charges

Question:

In 2003, the Securities and Exchange Commission released an Accounting and Auditing Enforcement Release (AAER) describing charges and discipline against TruServ Corporation and the company’s chief financial officer. The charges claim that TruServ underestimated the accrual for merchandise payable.


Required

Find and read the 2003 AAER related to TruServ Corporation. Explain the scheme that the company used to understate the accrual for merchandise payable. Finally, what audit procedures might an auditor use to uncover this misstatement?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Auditing A Practical Approach with Data Analytics

ISBN: 978-1119401742

1st edition

Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton

Question Posted: